Broker and Broker

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This past week, one sector which took it on the chin was the brokerages. The reason is easy enough to understand. Two important revenue sources for them are (1) commissions and (2) interest on deposits. And yet (1) commissions are going to $0 across the board and (2) interest rates are plunging, and ultimately, I believe, will be negative. So here is the kind of catastrophe these companies are facing, with most of them down nearly 50% from their highs last year:

And although it’s certainly not a retailer brokerage, I wanted to also share our friends at Goldman Sachs:

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