https://www.capitalgroup.com/advisor/insights/articles/what-if-fed-doesnt-cut-interest-rates-2024.html
11 replies (most recent on top)
This is the same Morningstar that admitted their predictions were meh?
https://www.morningstar.com/stocks/analyzing-performance-our-stock-recommendations
Our updated event study and equal-weighted portfolios approaches provided mixed evidence to support the claim that star ratings are predictive of future stock returns.
We still have client cash sorting and bond exposure. Higher rates are not a guarantee of performance. It is more likely that the street, which is flipping between anticipation of lower rates, higher rates, stagflation and inflation pressures, is looking at cost cutting and hoping for a return of higher than industry return-on-equity. Investors also like decimation of the company for gains. We saw that with Boeing and GE, for example.
In the long run higher rates are better for schwab. https://www.morningstar.com/stocks/with-charles-schwab-under-pressure-is-stock-buy-sell-or-fairly-valued
How quickly they forget.
https://content.schwab.com/web/retail/public/about-schwab/SEC_Form10k_2022.pdf
Some Schwab problems were caused by higher rates and bad bond decisions. More harm was caused by thinking they could pay 0.10% interest when rates were at 4.5%.
Higher rates are not always our friend.
I am pretty sure rates going up is good for schwab. We are mostly a bank at this point. I mean the stock has jumped up along with the rates so there's some sort of correlation
Schwab management is the epitome of spite and hate and all things malicious. We pity the employees left behind having to deal with the toxic environment and eventually having to be blackmailed into resigning since Schwab has become too cheap to even pay for severance.
Have you ever been set up to fail? Then threatened to have your license tainted and making you unemployable unless you resign? That's happened to a bunch of ex-employees. The nerve and the gall of management pulling this sh*t on the people who brought in so much business to Schwab over the years. The whole company will be cursed for victimizing good people like this. You have no idea the bad karma coming to Schwab.
All this hate… bunch of spiteful little people, wishing harm on those left behind….
F*ck Schwab. Hope it destroys Schwab and all the branch managers there.
Cheaper can be less skilled and inexperienced onshore too. Look at how CC was going to change retail and call center.
>cheaper labor sources.?
even Indian service are turning expensive.
Only solution We see is sending all H1b Packing India, let them work from home.
AI
till Schwab allow old employee on legacy system , you cannot move to AI, they will have vested interest not allowing AI migration.
There Migration have failed in many places even moving out legacy.
Did you not learn that they lie at clown halls?
For bank jobs it will depend, but expect the industry to cut when possible. Both as response to higher rates and hopes that they can move to AI and cheaper labor sources.
Do you not watch any of the corporate updates? They cover this sh-t in pretty clear detail. Spoiler: it will be good for revenue.