Do you think it is time to buy financials???
Financials are starting to look good but it’s hard to catch a falling knife. My best bet is the airline sector. There are many reasons why this industry could double from here but obviously it is a play on oil weakness. They all sell at 50% of book, they now charge a fee for everything, airline travel is not going anywhere, consolidation is necessary, etc… The fundamentals aren’t the best but if oil where to fall to $100 per barrel, that would significantly improve their outlook. It might not be good timing but at some point, people are going to make a lot of money on this group…unless oil is really going to $200.
Tuesday would have been a good time. All the talk on the news and radio was concerning bank runs.
dead cat bounce plus a little help from WFC #s. Looking at the biz models for a lot of these companies it is harder to see where they are going to make big profits in the near future, let alone stop writing crap down like mad.
they were (and are) cleary undervalued, but do not expect them to go back to where they were. they will be ugly for a protracted time period (24 months…)
I wish I bought UYG earlier this week when it was at $14. Would have paid for the rest of my summer debauchery.