Question from latest YouTube video

Thanks Dan for explaining effect of interest rate hike on growth companies in your latest YouTube video. Using same logic, should I think that financial sectors will perform best in 2022? Banks will get benefited with increased interest rates since they lend money on contrary to growth companies that borrows money. Lending money on higher interest rates will generate more income for banks. Should we load up with TD and EQB?

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Asked on January 15, 2022 3:06 pm

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Private answer

Yup, certainly a possibility. However, important to understand that much like a lot of the impact from rising rates is priced into the growth sector, much of the rate hikes are priced into financial companies. Case in point, their crazy returns in 2021.

That being said, I feel there is plenty of room left for financials to run in 2022. I am long TD RY BMO EQB IFC MFC

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Posted by Dan Kent

Answered on January 15, 2022 7:00 pm

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