Financial stocks will deliver strong earnings even as rates fall, because deregulation and rising loan demand help them. Previous cycles show financials perform well when rates drop. x.com 

US financials could lead the market into year-end if the Fed signals at the upcoming FOMC that rates will stay higher for longer, as expected. The financial sector is breaking out on the weekly chart, and banks such as JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America are quietly reclaiming trend and pushing toward new highs. x.com 

European banks are a structural re-rate of an industry priced like a casino that can trade like a utility. They trade at 8.5x earnings with a 6% dividend yield plus 3% buybacks, and 1.4x tangible book for an expected 16% return on tangible equity, and have beaten the Nasdaq-100 for five years. Cost control, capital returns and steady management run across the sector; Monte dei Paschi, BBVA and ABN AMRO are one trade. A Russia-Ukraine resolution, possibly soon, would lift Europe and Raiffeisen. … Show more

Rate-hike fears are dragging down the whole lending sector, making Figure Technology look like a bargain around $25. That sector selloff could offer an opportunity over the next few months. x.com 

Bank stocks look buyable if systematic selling is reacting to a flatter yield curve: the front end that drives earnings has barely moved. JPMorgan and Citi card spending rose 10% and 13%, and Citi and Wells Fargo reported lower credit losses. Wells expects steady margins and improving interest income as loans grow and old fixed-rate assets roll into higher yields. Funds crowded into banks before results, limiting near-term buyers. x.com 

The big six US banks should report great Q2 results as the front line of a solid economy. Net interest income, fee growth, steady credit trends and capital levels all look supportive, and valuations remain cheap, leaving opportunities to add. x.com 

Fintech stocks are the counterintuitive trade as rates break out, rather than the usual oil and copper. Treasury yields are rising, but credit spreads are falling, which helps fintechs, while wider treasury spreads help banks. x.com  x.com 

A clearing of the gloomy environment will make lending stocks the next multibaggers. SoFi, Upstart and Klarna are down now, much as many cybersecurity stocks were before rising two- to fourfold in under six months. Better Home & Finance (-75% YTD), LendingTree (-55%) and Rocket (-47%) join them among lending names whose current prices will look dirt cheap in 2028-2029. x.com  x.com 

Financials could be bottoming as major institutional accumulation meets extreme relative weakness. The Financial Select Sector SPDR Fund has been compressed near $50 for 17 months, saw its second record-level volume accumulation last month, and its six-month candle is sweeping lows while defending the largest institutional support on record. It is reclaiming its all-time-high anchored VWAP after a bullish engulfing candle, with no sell pressure. A drop back below $50.70 would be unwelcome. x.com  … Show more

JPMorgan's miss on both revenue and earnings strengthens the case for avoiding bank and financial stocks. The earlier bank-index chart rollover had suggested possible profit disappointment, but the observed JPMorgan share weakness is not a near-term price forecast. x.com  x.com  x.com