When interest rates go up, in-vestors traditional-ly flee bank stocks. Their logic seems ironclad: As rates move higher, banks must offer higher rates to depositors to stay competitive. But if they can't quickly charge borrowers more as well, their profit margins get squeezed. True to form, as expectations of a rate hike have gained momentum, bank stocks have taken a beating, falling nearly 8% from a peak in March, vs. a 596 decline for the market as a whole.
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