$SoFi Technologies (SOFI.US)$ who knows why it fall when rep...

PokaiTrader : Better Q1 reported but guidance in next qtr below analysts expectations. See news item.

DreamyLucid PokaiTrader : Weird. Analysts don’t set expectations until the financial results are done.

10baggerbamm PokaiTrader : you have to understand that a significant amount of revenues made by Banks is attributed to refinancing which means this just like utilities need lower interest rates and when there is an indication that the FED will cut either jobless claims Spike or the feds now all of a sudden become very dovish or time goes by and we're in September and they cut by a quarter that's when Banks the origination side for new home purchases and specifically refinancing start to accelerate rapidly which means earnings are going to go up dramatically cuz there's a lot of money made and refinancing

70566874 OP 10baggerbamm : so we should buy lower to expect fed change view

10baggerbamm 70566874 OP : you're absolutely correct if you have a one-year time horizon you're going to do very very well in any of the larger Banks like Goldman JP Morgan or the ETF bnku because as rates come down the larger Banks benefit from underwritings IPOs which are very very few and far between and the current market environment and traditional Banks that rely on depositors and making loans because that's how they make their money is by making loans also now add refinancing. to give you an idea I owned a mortgage company we had many offices throughout the United States on a typical $300,000 refinance if we were acting in the capacity of a lender where we use our own Warehouse line of credit between  up front points and the money that we would make when we sold the loan and administrative fees there was over $11,000 made on a $300,000 loan. if we were acting in the capacity of a broker it was about $10,000 made on a $300,000 loan.. so that gives you an idea on one loan how much a bank makes on a refinance it's enormous and that's a gross number obviously you would pay whatever fee to the loan officer or loan originator but all said and done there's an enormous amount of money that comes your way on a refinance that's not around in the current environment