Banks in 'Twilight Zone' of Business Cycle, Says Fidelity's Timmer

The video discusses the current state of big banks within the business cycle, highlighting the challenges of limited visibility as the cycle transitions from mid to late stages. It examines the impact of a flattened yield curve on financials, noting that banks have underperformed due to macro risks rather than individual performance. The discussion also covers the positive effects of deregulation and lower taxes on banks post-presidential election, while addressing concerns about the yield curve's impact on net interest margins. Despite these challenges, the sector is showing signs of recovery.

In what ways might investors approach banks during uncertain economic conditions?

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What concerns arose about banks' profitability as the yield curve began to flatten?

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