http://www.thestreet.com/story/10418903/1/kass-im-putting-my-money-in-the-banks.html "I have added Bank of America (BAC - Cramer's Take - Stockpickr) to my banking basket of Citigroup (C - Cramer's Take - Stockpickr) and Wells Fargo (WFC - Cramer's Take - Stockpickr)."
Doug Kass: "In the 2005-2007 interim, I was short many of the major money center banks as well as the mortgage and bond insurers, government-sponsored enterprises and other specialty financials." Too early. >>>>>>>>>>>>>>>>>>>>>>>> "I have added Bank of America (BAC - Cramer's Take - Stockpickr) to my banking basket of Citigroup (C - Cramer's Take - Stockpickr) and Wells Fargo (WFC - Cramer's Take - Stockpickr)." Too early, again?
He writes a good column, but he has been all over the place like a madwoman's breakfast with Citi and other trade financial trades over the last 4/5 months...I can't keep up.... So I read his column simply for his opinions on the economy, which do make some sense.
I think we all knew the housing market was out of control. I knew in 2004 that it was out of control, but just did not know when it would break... This is the same for all bubbles. We all know that there is a bubble, but just dont know exactly when it will pop so we chase the bubble and the unfortunate ones get left at the top...
I remember saying to my wife, "thats it, the real estate market is topping". "Why?, she said...."we just got an extra real estate supplement in the paper". Same thing happened when we had virtually 24 hour tv on tech and now ,just recently, an "oil special"....and so it goes. I was honestly surprised the real estate market didn't capitulate earlier than it did!
It depends on your time horizon. Banks are excellent long term holds right now. Buy the fear, sell the greed.