What a soft landing could mean for bank stocks

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 63%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

The financial sector ETF (XLF) has fallen nearly 5 percent over the last three months as the Federal Reserve interest rate tightening has taken its toll on the sector. Many investors are wondering what this means as we head into 2024 and what it will take to get this sector back on its feet. RBC Capital Markets Managing Director Gerard Cassidy joins Yahoo Finance to discuss how high interest rates have affected the financial sector and what investors should look out for if the central bank achieves its goal. Cassidy gives historical context, referring to 1994 when the Fed started raising rates, Orange County filed for bankruptcy, and the bond market tanked. He claims if the central bank can 'thread the needle' with 'what they called back then the goldilocks economy or the soft landing, banks were up 55% in '95. Best single sector in the market,' then we should be able to see similar results for next year. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

) has fallen nearly 5 percent over the last three months as the Federal Reserve interest rate tightening has taken its toll on the sector. Many investors are wondering what this means as we head into 2024 and what it will take to get this sector back on its feet. RBC Capital Markets Managing Director Gerard Cassidy joins Yahoo Finance to discuss how high interest rates have affected the financial sector and what investors should look out for if the central bank achieves its goal.

Cheap TSX stocks such as Dentalcorp are trading at an enticing valuation and have massive upside potential right now. The post 2 Defensive Stocks That Can Gain up to 128%, According to Bay Street appeared first on The Motley Fool Canada.Warren Buffett is perhaps the most famous investor in the world. Having earned the appellation "The Oracle of Omaha" thanks to his investing success through his company Berkshire Hathaway, Buffett now...

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

VanEck launches ETF tied to ether futures(Reuters) - VanEck on Monday launched VanEck Ethereum Strategy ETF, becoming one of the first U.S. investment managers to bring a futures-based ...
Source: SaltWire Network - 🏆 45. / 63 Read more »

New ETF Boom Defies Saturation Warnings in $7 Trillion IndustryMoney-management firms launched new exchange-traded funds at a rapid pace last month, shaking off fears that the $7 trillion industry is already overrun with low-cost investment vehicles.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Flows into AI funds wane as US rate worries weighInflows into exchange-traded funds (ETFs) tracking artificial intelligence (AI) companies have ebbed after their sharp run-up earlier this year, as investors fear persistently high U.S. interest rates will hurt company valuations. The Global X Robotics & Artificial Intelligence ETF received $1.8 million in net inflows in September after sharp outflows in the prior month, while the smaller ROBO Global Robotics & Automation Index ETF saw outflows of $14.3 million. On the whole, AI and robotics focused ETFs had a strong start to 2023 after the release of Chat GPT-4, taking in over $1.9 billion through the first three quarters of the year, said Aniket Ullal, ETF data and analytics head at CFRA Research.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »