The largest credit and mortgage crisis in history and you expect only a single major bank to fail? Don't touch financials.
To be honest, I did start to buy some of the financials recently like BAC, FNM and some other large cap names. Time will tell if I am a fool, but I plan on averaging down if I am wrong. My theory is that these companies have thrown out the baby with the bath water during these last few quarters with large write-downs. At some point, there has to be a recovery. The first two quarters are over, oil looks like it hit a top and so the next logical progression is for a recovery in financials. Is BAC going to close its doors? I certainly think IMB might, but not BAC. When all is said and done then it will be the larger banks that will survive...
I grabbed some WB calls in case of a buyout by JPM, other than that I'm shortin away. Lots of meat on the bone on some of these regionals, whose credit is locking up.
port the blood is in the street in financials like no other huge group in history. 2 days ago i started on a plan to buy high 6 figures of financials. the hate and vile toward these is something history has never seen. my list includes bac,aig,wb,c,fre,mer,usb,ms,wfc. i missed other bull markets due to extreme pessimism in the media and i won't miss again. sure these will go lower and the hate will grow and i will continue scaling. this is a 3-5 year hold and i expect 100-200% returns
I like the KBE bank etf....That contains almost all of those names you mentioned. Another one is the UYG. Isnt this an interesting article. The analyst recommends buying the XLF at the top and only recently just shed his position. http://www.marketwatch.com/news/sto...A74-C1D4-47FD-B683-6FA06B868353}&siteid=yhoof Buying at the top and selling at the bottom????
Why is everyone looking at all these shit companies in the financials trying to find a bottom. Unless you can read their financial statements and know the future, you're catching a falling knife tipped with a bomb. GS is the only financial in the US worth owning. Paulson knows how to tip them off, so they are always going to make it out on top. If you want to play financials, use GS as a a proxy for the XLF. If any of the banks or broker dealers do better, GS is going higher.