RE:Canadian Banks Downgraded to SellSo the message that you are sharing is that banks are going to be raking in more and more profits, causing their share prices to skyrocket. Eventually, they will be making so much money due to high interest rates that it will drag down the economy.
The same can be said about oil. As demand outstrips available supply, oil will rise and companies will be raking in more and more profits, causing their share prices to skyrocket to obscene levels. Eventually, the price of oil will rise high enough to drag down the economy and reach it's peak.
The conclusion is: Buy Banks, Buy Oil Companies for the impending rally.
This must be the most bullish post we have heard from you, ever.
angelnicky wrote: due to slowing economy with high interest rates
D’Souza acknowledged that higher interest rates will boost the banks’ net interest margins, or the difference between what they charge for loans and what they pay in interest on deposits. However, he said that those higher rates will eventually drag down economic growth and create renewed risk for the banks’ loan books.