- The market is starting to come under pressure, and that makes me generally less bullish on the big U.S. banks.
- Banking is a cyclical sector, and has been performing well as the economy recovers and expectations for rate hikes got more hawkish.
- However, these expectations are being tested by new COVID-variants, travel restrictions, and sluggish jobs numbers.
- Bank earnings have been strong, but the boost from a release of credit loss provisions is subsiding. So we will want to monitor the next few quarters of earnings very closely.
For further details see:
KBWB: Big Banks Are A Hold For Now