The rising tide of inflation has millions of Americans worried about more than just paying more at the registers. They’re worried about their futures—but banks are sitting pretty.
Like many of you, I still have nightmares about the crash of 2008.
I can remember the overall feeling of dread that seemed to permeate every aspect of our daily lives in the days following the collapse of the housing market.
If I had to hear one more person say, “Man, this economy…” I might have found the closest bridge to contemplate jumping from. Not in an attempt to off myself…just as a way to get out of that conversation and escape the madness.
The best part of it all is that I was in the banking industry at the time—working as the assistant branch manager, no less!
So, when I say I was emersed in it, you can trust that I’m not exaggerating.
Ever since the “too big to fail” debacle, people kept banks at arm’s length, using them because they really don’t have a choice but not really trusting them to both protect and grow their money.
Fool me once shame on you…fool me twice? You know where I’m going with this…
And for the past 13 years, banks have been the nerdy kid at the party – the one that everybody is friends only with when the rest of their buddies aren’t around.
However, that may all be about to change…
Interest Rate Hikes Make Banks “The Pretty Girl” Again
Rising inflation may soon make the banking system the belle of the proverbial ball once again, and a development on the horizon may change the way the investing world looks at banks all over again.
Inflation is a real mother right now…
And in order to combat it, the Federal Reserve is most likely going to raise the interest rates. Not any time soon, mind you, but newly-reappointed Fed Chairman Jerome Powell has hinted that interest rate hike will happen sometime early next summer, which will set off a chain reaction felt all around the financial world.
We will most likely start seeing money flood back into the banks since some investors will be looking to diversify and be guaranteed a profit from their deposit.
When I first got into banking, CDs (Certificate of Deposit) were getting over 7% returns!
Sure, you had to lock your money up for five years…but that profit was guaranteed at the end of it all.
With the rumors of interest rate hikes swirling, now might be the best time for active investors to start looking at the banking industry for some good deals.
We’ve been told we’ve got about six months before Powell starts raising the rates…
But, as you’re well aware, that’s a blink of the eye in the financial world – and that’s why we should probably start hunting ourselves.
Our Sherpas Up The Mountain Of Wall Street
Well, as always, Adam O’Dell and Charles Sizemore are ahead of the curve.
They’ve already targeted a company in this sector that they think is going to pop.
Independent Bank (IBCP) recently popped up on the Green Zone Fortunes Hot List – and once you hear about the results of the company’s third quarter results, you’ll understand why this one stuck out from the crowd.
The company had an increase in income of 5.7% over the third quarter of the year before, gains on mortgage loans of $8.4 million and total mortgage loan origination volume of $453.8 million, growth in portfolio loans of $69.4 million…and to top it all off, they were able to issue a $0.21 dividend per share.
Now, keep in mind, Independent Bank had all of this going for it BEFORE the coming rate hike that’s sitting just over the horizon…
Once that happens, who KNOWS how high IBCP could go.
What I do know is that if we want to be in before the crowd, we should start moving now.
I find it best to let Adam and Charles be our Sherpas up the Wall Street Mountain—so if you’re in the market for guidance, you might want to consider subscribing to Green Zone Fortunes today.
However, we get it when our readers like to blaze their own trail…that’s why I’m happy to make sure you have all the information you need to start your own research.
Just realize that there are some BIG changes coming down the pike – and it’s best to be ready for it, right?
As I always say, forewarned is forearmed…
“If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.” – Hyman Minsky