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Friday, November 11, 2016

my opinion on US banking


XLF is +4SD right now on massive buying volume post-election.

Apparently people think the banks will make a shit-ton of money if Trump repeals Dodd-Frank.

Unfortunately for them, it'll take a lot of time to repeal Dodd-Frank, even with full Republican control.

And if it's repealed, all that'll mean is another massive banking crisis down the line, because bankers are coke-headed fools.

Seriously, in the 2002-2006 period, it was pointless to own any US banking stock. You wanted to own transports (UNP, CP, CN), fast food (MCD, YUM, SBUX), internet (APPL, GOOG, AMZN, PCLN), tech (CHKP, CTSH, BRCM, WDC), pharma (AGN, BIIB, CELG, GILD), oil & gas (CBT, CHK), base mining for a bit (FCX, VALE, POT) and a bit of retail (COST, HD, MA, V).

The only time anything bankish was a screaming buy pre-Obama was when the banking system started to collapse under their own massive fraud, and then what you bought was any ETF you could find that shorted them into nothingness.

So as far as I'm concerned, a one-week 10% move in the financials is a screaming fucking short.

Someday. Maybe not right now.

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