Matthew Fox of Business Insider recently posted a superb article on the reasons why the stock market bottomed in October 2022.
Interestingly he lists 6 reasons why – all valid, but for me there was only one, the first one that Matthew lists: inflation seemingly under control from the Fed’s aggressive money tightening policy.
As we continue to see the economic damage from high interest rates in the form of regional bank failures, then it would be silly not to search for value in the regional banks.
Perhaps I’ll take the lazy way out and simply purchase the regional banking spider/ETF as I’m unfamiliar with valuing banking stocks on an individual basis other than via quant methods.
But it’s clear that regional banks are suffering and will continue to suffer as the Fed continues to raise rates.
To that end, it’s inconceivable that all regional banks decided to grow aggressively when interest rates were low and take on interest rate risk such as those that have failed already.