Bottom is not here yet in financials. I just read a note (from this morning) from Citigroup comparing what we are seeing right now to August of 2002 as a great buying opportunity. It was entitled something stupid like "blood running in the streets" essentially calling a bottom. As I have previously stated in posts, I am sick of the phrase "blood running in the streets." These people don't know there history if blood is currently running in the streets. We are squirting currently and we may get to full blood flow but stop using an "in" phrase right now.
I refuse to believe sell side analysts on Wall St. can call bottoms like this. How many housing bottoms have been called from these firms. In fact it is only recently (the last two to three weeks) that it seems the tone has drastically changed when discussing housing by "talking heads" on CNBC and such. This change, in my eyes, has really been remarkable. I may be wrong but the time to buy housing stocks may be very close (still not personally buying). Anyway what we went through in housing with bottom callers I think we will go through in the financials. I saw a graph showing that S&P 500 bank index (subset of the financials) showing that it is down like 30% since August. I fully expect that to be down 50% and maybe more before this is all over.
Citigroup is already down like 3% from there call this morning in one trading day.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment