GS stock was pretty much constant for the last decade but suddenly it has doubled over past one year, outperforming all FAANG stocks and a lot other bigger companies. Does anyone know why or how? I see their performance have been very strong over past year but their performance is usually strong, so why the sudden huge jump in stock price? #investing #goldmansachs #faang
Banks love inflation and are holding a fuckton of cash. Just look at banking across the board.
Inflation is actually bad for banks. Holding cash is not a good move when inflation is high, think about it your cash today will be worth less in the future. Valuation of stocks is not easy to explained and no one really knows why market fluctuates the way it does. Don't believe in those auto generated articles "stock drops because of X". Next day, "stock rallys because of the same X". Even though it's complicated, inflation does contribute to the current valuation. It's not just banks, most stocks are up during the pandemic. One can argue the market is also speculating a sooner than anticipated interest rate hike to combat higher than usual inflation. This is good for banks
Maybe because Apple card start showing strong growth ?
All the banks did well.
Volatility is good for banks. It brings more transactions. Banks are parasites on transactions :)
Because their stock price was stagnant for almost the entire decade. In the last couple of years, they made tons of money from the consumer business while decreasing compensation for their employees. Sad employees = happy stock holders ๐
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