Long Opportunities Coming in Financials

At times like these most people find it easy to be humble. Having seen their favorite stocks decline to 52 week lows and all their grand theories fall short, few people are left with the mindset that they are the masters of the universe. This is a good lesson and one that we would do well to remember when the Bulls return.

I cannot believe how low these financials are: GS, CS, MER, RJF, BX and FIG.

I am not putting a "Buy" on these stocks, but I am saying that these are all artificially low. Investment banks will be back on their feet before too long and GS and CS will skyrocket. RJF is a brokerage that seemingly has no exposure to the subprime meltdown but has been deemed guilty by association. Merrill is selling around $25 down from $90 about a year ago. Private-equity is a boom and bust business. BX went public at the tail-end of the biggest boom in the history of the industry and now they are in the heart of the bust. FIG will rebound at the same time when deal making takes off again.

Again, don't buy these now but do keep a look out. Better to buy them late rather than early because it will be a long ride back to the top. All those named will be high quality long positions in the coming months.