What to Expect From Goldman Sachs, BofA Under Trump

The transcript discusses the weak quarter experienced by financial institutions, particularly Goldman Sachs, due to soft macro products and potential company-specific issues. It compares Goldman Sachs with Bank of America, highlighting differences in balance sheet strategies and interest rate sensitivity. The discussion also covers market trends, risks, and valuation concerns post-election, as well as the loan growth cycle and capital markets. Finally, it examines Morgan Stanley's strategic shift towards wealth management and its impact on revenue balance.

What was a significant factor contributing to the weak quarterly performance of some financial firms?

• High company-specific growth

• Unusually soft macro products

• Increased market share from Europeans

• Strong macro products

How is Bank of America positioned compared to its competitors in terms of interest rates?

• Equally asset sensitive

• Not affected by interest rates

• More asset sensitive

• Less asset sensitive

What was a key reason for the downgrade of several financial stocks after the election rally?

• High positive earnings revision potential

• Increase in fiscal policy changes

• Multiple expansion without earnings revision

• Decrease in regulatory improvements

What is a substitute product for loans that was strong in the capital markets?

• Equity underwriting

• Debt underwriting

• Real estate investments

• Foreign exchange trading

What strategic shift did Morgan Stanley make that is expected to balance its revenue mix?

• Increasing loan growth

• Focusing on emerging markets

• Shifting to wealth management

• Emphasizing fixed income business