Financial institutions benefit from higher equity risk premiums and interest rate spreads.

Charlene Vos

2017-04-01 06:40:00 Sat ET

With the current interest rate hike, large banks and insurance companies are likely to benefit from higher equity risk premiums and interest rate spreads.

Pre-crisis U.S. banks such as Goldman and Citigroup carry financial leverage as high as 35-to-1.

Meanwhile, these banks carry financial leverage about 10-to-1.

In this golden age of finance, it is likely for banks and insurance companies to lever up with robust operating profitability to 15-to-1 in light of post-Dodd-Frank deregulation under the Trump administration.

In this respect, financial stocks are likely to experience an imminent boom in stock market valuation.

The current Trump stock market rally bring tangible benefits to bank stocks that will likely receive preferential tax treatment in the form of both lower corporate income taxes and indefinite tax holidays for offshore cash repatriation.

As the current interest rate hike attracts capital inflows from non-U.S. economic regimes, this hot money will spur macroeconomic growth, corporate investment, and technological innovation with higher wages, better high-skill jobs, and more sustainable cash dividends, share repurchases, and capital gains for the typical stock market investor.


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Laura Hermes

2020-06-17 09:23:00 Wednesday ET

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members. William Ferguson (2013) &

+See More

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty.

Chanel Holden

2019-08-05 13:30:00 Monday ET

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty.

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty. In mid-2019, China reduces its U.S. Treasury bond positions by $20.5 bil

+See More

Persistent post-Roman European fragmentation leads to modern economic growth and development.

Jacob Miramar

2023-10-21 11:32:00 Saturday ET

Persistent post-Roman European fragmentation leads to modern economic growth and development.

Walter Scheidel indicates that persistent European fragmentation after the collapse of the Roman Empire leads to modern economic growth and development.

+See More

President Trump allows most JFK files to be released to the general public.

James Campbell

2017-09-25 09:42:00 Monday ET

President Trump allows most JFK files to be released to the general public.

President Trump has allowed most JFK files to be released to the general public. This batch of documents reveals many details of the assassination of Presid

+See More

Harley Davidson plans to move its major production for European customers out of America due to European Union tariff retaliation.

Rose Prince

2018-06-21 10:42:00 Thursday ET

Harley Davidson plans to move its major production for European customers out of America due to European Union tariff retaliation.

Harley Davidson plans to move its major production for European customers out of America due to European Union tariff retaliation. European Union retaliator

+See More

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Rose Prince

2018-10-15 09:33:00 Monday ET

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties such as cardiovascular medications an

+See More