Conventional wisdom say banks generally do well if the federal reserve raise rates and if interest rates in general go up, so why suddenly all local bank stocks not doing well ?

If they continue to slide everyday for next 2 weeks then what does it say about them? That the rate hikes make them less attractive?

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u/RoundDonn 1 3 days ago

My toilet has a contrarian take on conventional wisdom
u/deeeptheta99 1 3 days ago

Doing well doesn’t mean share prices continue go up. Is more like overvalue
u/fun_anxiety146 1 3 days ago

Banks do well up until ppl stop taking loans
u/Mundane_Life_5775 1 3 days ago

Rate hikes when economy doing well is okay. Rate hikes due to inflation and weak economy = no one has money to pay debt and bank ends up holding the bag
u/Agent0fChaoZ 1 3 days ago

It says that a lot of people chased the high and getting soy hands.
u/Junior_Word8811 1 3 days ago

there's actually a lot that goes into why the stock prices go up or down higher interest rates can do a lot to the economy. part of this is simply, it also means banks charge you higher rates for borrowing/loaning which might drive down loan demand and might eat into NIM profits
u/free_username_ 1 3 days ago

Because their multiples have been appreciating to drive share price expansion in contrast to earnings. Demand for equities goes down when rates become so high as the risk free rate is effectively good enough for most institutionals to meet their target returns in lieu of holding risk bearing equities that pay a dividend
u/BlackwerX 1 3 days ago

Buy the xxxxxx, sell the xxxx
u/GooglySoft 1 3 days ago

Cope