LEH, Gold, and Banks.
I don't know if you had exercised your option on LEH yet or not, but I wish we had bought in yesterday. I'm not really sure what to look for with the financials sector. I read about a hedge fund manager who criticized the SEC because their policies favor the corporation and not the investor in the context of releasing information. It seems to be a common complaint among people who lost big in the past few months. My dad always said, stay out of financials because you really NEVER know how deep the shit is.
With that said, what is it we're looking for as for as this big turn around? I guess having had my head in a kaplan book all summer I really couldn't tell you what's going on with the economy, are their indications of a recovery? Or is it just the bad news that's driven down these stocks has seemed less and less "legit" lately, and is not substantiated?
Now, I might be showing my own ignorance with this comment, but I'm a risk taker, what the hell. Cabot is recommending this gold mining company, Gold Corp. (GG) Only thing I've ever known about gold is that it's the "go to" during "tough times". So acting on that recommendation, in my mind, would contradict our reasons behind investing in financials, which seem to be,, "it's really not as bad as they say". Thoughts? Was Gold something to buy back in October when the shit was just hitting the fan, or is there still money to be made there?
What about banks? Bargains? Still as safe as they used to be?
posted by John Siami @ 2:20 AM
2 Comments
2 Comments:
My LEH puts are long gone and I am happy to have missed that rally yesterday which would have wiped out about all of my gains.
As for indicators, I worry about news first and foremost in this Bear market--how much bad news is left? Seems like everyone is expecting more but today is looking to be the second big day for financials (JPM reported strong earnings this morning). However, JPM executives said they expected tough circumstances the rest of the year. The BSC deal was a steal and may have helped them to this point.
Yesterday that financial sector had its strongest day ever.
In the banks I like NCC a lot (now at $4.25 off a 52-week high of $43.50). I wouldn't say that banks were safe by a long shot though.
NCC making it out alive will bring some great returns. I'm a little unsure about gold right now. I think it just depends on your outlook of the U.S. economy and the dollar. Its a safe investment but my opinion is there isn't a lot of upside potential left.
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