I don't like the current situation here, but I still think that those predicting a very gloomy future for Schwab are exaggerating a bit.
5 replies (most recent on top)
SCHW is going to make money no matter what. However, you can make the same money elsewhere and not deal with the level of dysfunction that goes on in SCHW. What you do, how you do it, who you work for, who you work with it all matter as much as the money upside. If you work in tech, IMO this matters more. I joined as part of the acquisition and my career certainly as taken a nosedive. #Needbetterleaders
Is it 0% rates right now? The 10 year yield is at around 1.55% today. Just 0.01% of $1T is cha-ching. I dun no.
probably $4B in trading commissions this fiscal year. Id say a market correction would be pretty awful for Schwab.
with 0% rates, what need do we have for more cash sweeps?
Out revenues are not tied to how well the equity markets are doing. If anything, market corrections could benefit Schwab's bottom line, as inexperienced investors panic and liquidate their holdings into cash sweeps.
No. Equity market correction is coming. And coming soon. We saw a preview in first half of October, which was nothing.
Robinhood shares plummeted in after hours trading. Brutal. SCHW is on its way to $90 soon. My sizable collection of years and years of accumulated ESPP, plus RSU and ESOP from dating back 4 years, is going to be a ki----g. I accumulate over $25K a year in ESPP, with some shares being bought at low 20s.
what will be the FTE reduction when the equity markets correct? What will buffer our revenue?