Higher interest rate environment would benefit commercial banks, especially regional banks both in the US and globally.
That is because higher interest rates help banks expand their interest rate margins which are the main profit engine for commercial banks.
Banking groups with large investment banking businesses will see the fixed income trading part benefit, while equities trading will get hurt. IPO underwriting should also decline. Mergers and Acquisitions total fees would also decline by around 25 %, I estimate.
Gold, if the USD stops appreciating towards other major currencies, could also rise. This would benefit the stocks of gold and silver mining companies.
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