US financials dead money?

Discussion in 'Trading' started by SEAWAN, Nov 9, 2010.

  1. SEAWAN

    SEAWAN

    Don't think so. BAC has tremendous earning power, with recent dismissal on mortgage case, we see more confidence, less scrutiny on US banks. Whatever happened to GS when they had the big civil fraud lawsuit, the stock is back to $170s and the bad news have been eaten & digested and now it works like an antibody. US finanacials are mid to long term play, get on the boat while it's not too late, long term options are still cheap, well, the stocks are still cheap.
    Do you concur?
     
  2. gobar

    gobar

    history repeating?

    first financial made new highs in 2007, then tech late 2007, then oil and commodities made new highs 2008.. then everything crashed

    first financial made new highs in April 2010, then tech oct 2010, and now oil and commodities making new highs?
     
  3. Couldn't disagree more. "Cheap" does not infer value. US financials are the worst sector to be in. You'll be staring at those long term options for years wondering what the hell you were thinking. So much better areas to be involved with; buying on dips in the right areas will be profitable.

    Once the US financial problems are more apparent it won't take down the whole market huge like some people on here think. But it might tank some US financials again.

    If you must go this route I recommend Canadian banks who have much better situations. Wait for any significant dip in price then buy them in anticipation of 2012 when they will all raise their dividends. They seem expensive today though.
     
  4. Thanks for the observation. Frankly I couldn't put my finger on it, I didn't know what I was seeing but there seemed to be a rolling motion, everything moves to one side of the ship, then the next... odd.

    Like someone throwing a wad of cash in one direction, then everyone moves toward it, then another pile of money in a different direction and everyone moves there.
     
  5. Canadian banks aren't 4 years ahead, they are 4 years behind.....

    Shit hasn't hit the fan up here yet. But it's coming fast.

    As for the US, as long as they can hide their losses or avoid them being acknowledged as such, through political maneuvering and games like "who owns this house", then bank stocks will function in a no mans land, or worse.
     
  6. Nonesense. Canadian banks are the envy of the Western World.
    The numbers don't lie. Check out Tier 1 capital, earnings results, divdend history.

    ps In my previous post I meant dividends raised in 2011 not 2012.
     
  7. Then again, they can always say ''we too big to fail'' and take your tax dollars.:cool:
     
  8. SEAWAN

    SEAWAN

    I agree. Canadian banks are conservatively run and with the upcoming dividend increase in 2011, it beats any US banks. But I'd wait for dips as well though.