Financials a Buying Opportunity After Selloff, Says RBC's Cassidy

The transcript discusses the recent sell-off in financials due to tariffs on Chinese imports and the flattening yield curve. It highlights investment opportunities in banks with diversified revenue streams and considers financials as defensive plays due to strong balance sheets. The analysis also covers the market position of Goldman Sachs and Morgan Stanley, noting their focus on capital markets and potential benefits from market activity.

What was the primary reason for the recent sell-off in financial stocks?

• Decrease in oil prices

• Announcement of tariffs on Chinese imports

• Increase in interest rates

• Rise in unemployment rates

Which type of banks are less impacted by changes in the yield curve?

• Banks with high deposit fees

• Banks with diversified revenue streams

• Banks with low capital reserves

• Banks with high lending spreads

Which banks are mentioned as having over 40% of their revenues from fees?

• JP Morgan and Citigroup

• PNC, US Bancorp, and Key Corp

• Goldman Sachs and Morgan Stanley

• Wells Fargo and HSBC

Why are financial stocks considered defensive plays in market downturns?

• They have high volatility

• They have low dividend yields

• They have strong capital levels and credit quality

• They are heavily invested in technology

What could potentially boost Goldman Sachs and Morgan Stanley in the future?

• Expansion into retail banking

• Spring back in capital markets activity

• Increase in lending rates

• Decrease in regulatory requirements