We’re watching the spread grow between large banks, small banks and regional banks.
It’s happening because the larger banks appear to be doing better at the expense of their smaller competitors.
So, you’re seeing situations where large banks go up while small banks go down. It’s a big spread, and it’s growing. What it’s really showing is that, as the regional banks take on all the risk with commercial real estate, large banks can better absorb the problems associated with that market right now. So you’re getting a disconnect.
But it’s not just real estate. The same things are also happening in large cap stocks vs. small cap stock right now too. The larger players are softening the blows of struggling markets, making it look like they’re doing better.
So, you’re not getting the full breadth of the situation, just an idea of how each individual market participant is seeing the state of the market.
That’s Anchor. Always paying attention to the little signals.
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