Trade Radar | Fitch Warns at Banks Downgrade! What Could You Do?
Another Weekly Session with Loui, M+ Online Head of Research.
A downgrade might be coming! Fitch Ratings cut its assessment of the banking industry’s health in June, a move that analyst Chris Wolfe said went largely unnoticed because it didn’t trigger downgrades on banks. (Fitch warns it may be forced to downgrade dozens of banks, including JPMorgan (CNBC)
Structural challenges in the banking industry. To recap, Fitch Ratings has lowered the operating environment (OE) for the US banks from “AA“ to “AA-“ in June, thus reflecting downward pressure on the US sovereign rating (Fitch).
Our view. Since there is a potential risk in the US banking sector, we might experience another round of selling pressure. Should there be another one-notch downgrade of the industry score, that may translate to recalibrate of investors portfolio.
So what do you think of Fitch's warning?
A bull or a bear to financial stocks?
We have these opportunities in our M+ Global App! Explore now in the financial ETFs.
| Code | ETF Name |
| FAS | $Financial Bull 3X Direxion FAS$ |
| FAZ | $Daily Financial Bear 3x Shares FAZ$ |
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
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