Tag: Banks - 24/7 Investor

Re-pricing Banks

It’s clear that investors are re-pricing stocks for the possibility that the proposed restrictions on banks’ trading practices will impact their profits in the future. The UltraShort Financials ETF (SKF) has rallied 11% in 2 days.

Yes, bank stocks are getting hit pretty hard. But Obama’s proposed restrictions aren’t yet law, and there’s plenty of reason to believe he won’t get everything he wants. More about that in a minute...

But first, I want to point out that this situation is how the "buy the rumor, sell the news" dynamic starts. Now, granted, this is a reverse example because investors are selling stock in anticipation of bad news rather than buying ahead of good news. Still it’s a good example of how investors are pricing in a worst case scenario now, before any proposals have become law.

I think we can expect to see bank stocks rally once the reality of ay proposed restrictions is finalized. But as we know, investors don’t like uncertainty.

Citigroup’s Mess

Some are saying that Citi is too big to fail. But it sounds to me like its problems are too big to save.

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Bank of America: A King Among Corpses

Though we’re in the eye of a global financial storm, Horacio Marquez still sees opportunity in its wake. Marquez, who is an emerging market specialist and editor of the Money Map Report, and Money Map VIP Trader, likes the strength and resiliency of Bank of America (NYSE: BAC).

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Vanguard International Growth Fund (VWIGX)

Unlike most mutual fund companies, Vanguard doesn’t manage most of its money. Instead, the firm hires outside management companies to do it, reasoning that it creates competition for performance and fees that ends up helping investors..

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When Less is More

In the battle between banks, the little guy sometimes wins. Plus, the relationship between corporate governance and excessive compensation of Chief Executive Officers.

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March Madness on Demand

This week's Investment Idea provides Internet financial technology services to financial services companies, particularly those of smaller sizes. Also, CBS's (NYSE: CBS) March Madness on Demand is shaping up to be a resounding success. And, Microsoft (Nasdaq: MSFT) and Intel (Nasdaq: INTC) unveil the Ultra-Mobile PC.

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