VFH News and Press, Vanguard Financials From 04/07/23

2023-04-07 02:00:00 ET Summary We examine the genesis of the gap between bank deposits and loans. Small bank loan books represent a greater proportion of deposits relative to large banks. This is fine and quite different from Silicon Valley Bank. The outsized exposure of small...

2023-04-03 05:35:00 ET Summary It's surprising to see the Financial sector with expected EPS growth for Q1 ’23 of 5.2% on expected revenue growth of 9%, especially given all the events around the banks in the last 4 weeks. While the regional banks are going to get a lot of ...

2023-04-02 03:43:00 ET Summary Bank shares plunged in the wake of the SVB meltdown, for understandable reasons, while Big Tech was off to the races, for reasons we will explore in further detail below. Stock price valuations are heavily influenced by interest rates, and a reductio...

2023-03-29 02:22:00 ET Summary The Fed and the ECB hiked their interest rate targets over the past several days and have stated that more rate hikes will be needed. Gold is not the anti-dollar, as it is sometimes labelled. It is reasonable to think of gold as the anti-bank or ...

2023-03-28 03:28:00 ET Summary 14 constituents in the S&P 500 have been impacted by a GICS Classification change which was originally announced in December 2022. Financials saw the largest change, with 8 of these constituents move from Information Technology into Financials. ...

2023-03-27 08:00:00 ET Summary I don’t think there is a financial reason to withdraw your funds from a small bank, especially if your deposits are below the FDIC limit. The fall in interest rates due to economic growth concerns has seen investors shift back to the assets th...

2023-03-27 07:40:19 ET Summary Last Friday, the Fed released a detailed report showing cumulative balance sheet data from banks as of March 15th. Many have focused on the increase in borrowings by banks. Upon closer review and financial ratio calculation, there are other data ...

2023-03-26 02:01:25 ET Summary The Fed's recent hike may appear contradictory given the stress level in the banking sector. Looking closer, the U.S. central bank appears to have more of a two-pronged approach, which I term "targeted quantitative easing" or "Targeted QE". This ...

2023-03-25 06:18:57 ET Summary The price drop of Vanguard Financials ETF does not seem to be a buying opportunity given that the fundamentals of the financial sector are likely to continue to worsen. Despite the failure of several regional banks, the Fed's policy of continuing to ...

2023-03-25 02:50:00 ET Summary On March 22, the U.S. Federal Reserve (Fed) hiked interest rates by 25 basis points to curb inflation despite turmoil in the banking industry. While the full impact of the turmoil in the banking industry and the Fed’s response is still unknowa...