What happened to the banks yesterday must have been a nightmare for everyone.
Whitney was right! How did we miss this FINANCIALS meltdown?
- Failure to see the poor demand for banking stocks by the masses.
But are the Bank stocks undervalued?
They certainly are based on multiples, based on DCF.
But traders are driving it down as there are no demand from investors. This is because the future cash flows are uncertain. Regulation and Bonds default are the main problems.
Banks are usually undervalued in times of uncertainty such as during the fall of LTCM but the decade after such crisis, banks evolved to become much stronger.
Despite regulations, banks will think of another way to make more money.
If you are brave, grab some financials.
No comments:
Post a Comment