5 ms·
Uh, stock price is largely an emotional sentiment on short-earnings potential. Whether a stock price of a bank moved or not should be largely immaterial compare
by sacnoradhq 4y ago
Uh, stock price is largely an emotional sentiment on short-earnings potential. Whether a stock price of a bank moved or not should be largely immaterial compared to its reserves.
What's important are:
- strong regulations (not half of Dodd-Frank becoming a banking lobbyist for weaker regs)
- results of recent, meaningful stress tests
- diversification of its asset portfolio in inflation- and interest-rate-safe instruments
- P&L exposure to liabilities or downturns in revenue
- diversification of product mix to weather commercial and retail downturns