KRE
Bearish US Financials $XLF $KREYield curve is flattening with each rate hike as the short term floor is hiked higher. Not a stable environment for better loan growth. These are the leaders, do people really expect a hand off back to FANG?
Hedging A Black Swan: KREI believe now is the appropriate time to begin hedging for huge Black swan style events. This near vertical run in the KRE banking index is now above the 07 highs. It tried to break above the +8 year long channel but failed. I expect a much lower retest. At the very least, I believe low delta long duration put options on this ETF to be a very cheap trap that others may suddenly decide they need in their portfolio.
KRE, Banking Momentum Diverges From "reality" Slowly scaling into financials. I admit I may be booking myself into the spa for a "face-lift" but the risk reward seems skewed in my favor to take a stab here.
