As credit card delinquency and rejection rates soar, a subscriber asked why the stock price of banks like Capital One (COF) are rising right now, rather than falling.

“Capital One peaked in 2021 when November consumption PCE growth peaked at 7.6%,” Keith McCullough explains in this clip from The Macro Show. “Right before that, Capital One stock went to $170 a share. Then it went to $84 during the regional banking crisis in March 2023. That’s a pretty good full investing cycle short.”

“How many times do you need to do this dance?” asks Hedgeye’s CEO.

“It goes from mid-$80s to $115-$120. It just did it again. That’s what stocks do when they go from $170 to $84. If you’re asking why does it not go down every time Capital One goes up, you’re going to be short for this game.”

Watch the full clip above.  

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