🏦 Steve Eisman is betting on banks, citing their low valuations.
📉 Banks need the Fed to lower rates and avoid a recession to thrive.
💰 Bank valuations are currently low, near recession levels from 2020.
✅ Eisman notes that negativity towards banks stems from deposit outflows due to unremunerated deposits and the 2023 banking crisis.
@Artedeinvertir:
“Steve Eisman is betting on banks because they are at a low valuation. For banks to make money, the Fed needs to lower rates and there cannot be a recession. The average bank is at a PE of 12, but now they are at seven times earnings, which is close to the recession of 2020. The negativity in banks is due to huge deposit outflows because they have not remunerated deposits, and there was the banking crisis of 2023.”
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