Letter # 80 | 21 March 2022 |

“Banks don’t perform during a rising rate cycle” or so goes one of the investment myths.

In my article today in the Economic Times, I look at (a) theoretical reasons why banks should do good, (b) empirical evidence of the past interest rate cycles and (c) reasons beyond the interest rate cycle that make banks an interesting bet.

One chart throws particularly interesting data; read here: bank stocks: Are bank stocks a bad investment during the rising interest rate cycle? – The Economic Times (indiatimes.com)

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