The Federal Reserve is expected to continue increasing interest rates aggressively due to high inflation and a strong jobs market. While financial stocks tend to benefit from a rising interest rate environment, the recent collapse of two major banks has caused a lot of stress in the sector.
Financial stock SoFi Technologies, Inc. (SOFI) has slumped 17.5% over the past month. Given the macroeconomic uncertainties and the company’s weak fundamentals, I think it is best to avoid the stock. In this piece, I’ve discussed why I am extremely bearish on the stock.
