European banks have been in free fall for days.
Right now many of them trade at discount (maybe) and offer dividend yields between 5 and 7%, which is very attractive if you ask me, although they may be cut in the future.
Obviously, there are many potential explanations; from war to sanctions to changing interest rates, inflation… but none of them seems convincing enough. Some of these changes may even be beneficial to their profitability, like a higher interest spread between assets and liabilities.
I have two questions?
1) Why is the traditional financial sector soo overlooked in many subreddits?
2) Do you guys think that EU (and also American) banks will remain soo profitable in the future?
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