I think financials will finally become the market leader through the end of the year and maybe till March.
The signs are clear. The economy is improving, and banks will have lower credit losses.
Despite the enormous burden of the mortgage putbacks, with the improvement in the mortgage crisis, these losses will shrink significantly.
People are trying to scare us into thinking that these mortgage putbacks will cost the banks alot. They treat these mortgage bonds at $0 when they could be worth much more.
Furthermore, the housing market might be showing signs of improvements, especially as rates are increasing. Homebuyers need to rush to take the opportunity to buy homes at cheap rates!
1 comment:
Financials are speculative stocks. Sell all your financial stocks and buy retail...that's only my view.
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