Fed Rate Impact: What It Means for Banks Like BBVA

The Fed’s Power Over Your Portfolio

Last week, the Fed held rates at 5.5% but hinted at one more hike this year.
Good news if you own:

• Banks (BBVA)
• Insurers (MCY)

Bad news for:

• Tech stocks
• Homebuilders

Here’s how to profit from the shift...

Banks 101:

• They borrow cheap (your savings account)
• Lend expensive (mortgages, business loans)
• Wider spread = more profit

BBVA’s Edge:
✔️ Latin American exposure → faster growth than U.S. banks
✔️ Trading at 7x earnings (half of Wells Fargo)
✔️ Dividend: 5% yield

Teaser: We’ve scored BBVA a 5/7 – [subscribe for our full buy zone]

Rate Hike Game Plan

Before the Next Fed Meeting (Sep 20):

1. Watch inflation reports (Aug 10 & Sep 12)

• Hot numbers = higher chance of hike → buy BBVA

1. Set alerts at $16.50 (strong support)

If Rates Rise:

• Expect 10-15% pop in BBVA
• Trim profits at $19

If Rates Hold:

• BBVA stays range-bound ($16-$18)

The Bigger Picture

Remember:

• Banks are long-term holds
• Never bet >5% of your portfolio on rate plays
  
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