Brad Hintz, senior analyst at Bernstein, recently surmised:
Retail Brokerage: Headwinds Stiffen, but Relative Near-Term Opportunities Emerge•
"We believe the Fed's reaffirmation of its current Target Rate will have a more meaningful impact on retail brokerage earnings through mid 2013 despite any immediate increase in short-term Treasury rates and earning asset yields as a result of 'twist.'
• "We acknowledge the negative consequence of a prolonged low interest rate environment to retail brokers' earnings. But we believe there is potential upside as investors search for stocks least susceptible to the Euro outcome.
• "The Fed's recent commentary warrants an adjustment to EPS est. We adjust our 2011 & 2012 EPS est: for SCHW to $0.75 and $0.80, respectively [down from 0.79 and 1.03]; for AMTD to $1.12 and $1.26 [from 1.07 and 1.42], respectively; and for LPLA $1.99 and $2.18, respectively [down from 2.00 and 2.50]."