Banks will not continue to rally

  1. 254 Posts.
    With all these thoughts of banks and the endless rallies being spouted on this forum i would like to make a few points

    1) Interest rate rises = decrease margins, decrease new business, especially for those banks with large home loan client bases

    although MAQUARIE may benefit from strong economy due to investment banking

    2) When the market does form a bottom and things start to look up particularly in US. we will again see the rotation from defensives (banks) and back into the growth stocks which have been battered recently

    These securities will definately offer better returns than banks in a different climate with a change in sentiment

    so, sure let the banks run for now but dont get caught holding them when sentiment changes
 
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