“If a dip in economic activity causes layoffs, cash-strapped borrowers will likely mean fewer loans and higher default rates. “The risk GDP falls again because of rising interest rates is increasing,” wrote Campbell. “I did not exit my bank stocks on Tuesday, but I did reduce my exposure to the space by close to 50%,” said Guilfoyle the day before the bloodletting.Ĭampbell on Wednesday noted in his TheStreet Smarts column, presciently titled “ Is It Time To Sell Bank Stocks?" that higher interest rates could drag on banks, as could lowering demand for loans as the economy putters. The Financial Select Sector SPDR Fund ( XLF), meanwhile, was down more than 4% on the close.īanks, explained Guilfoyle early Wednesday morning, “don't do so well during periods of economic recession as demand for credit dries up as business and households cut back on spending plans.” He also noted that as the mortgage business ebbs, banks also feel the crunch. The ETF for regional banks, the SPDR S&P Regional Banking ETF ( KRE), was down nearly 4.7%. It was down more than 10% from just five days earlier. And he listed numerous reasons to be wary of the financial-services sector: deposits data, higher rates lasting longer than expected, commercial real estate woes, the lack of monetary and fiscal policy relief that were seen during the Great Recession, and “zombie companies” he sees as a “disaster about to happen.”īy Thursday’s close, the SPDR S&P Bank ETF ( KBE) had fallen 7.28% to $42.66. Kass also warned of the “ bearish” messages coming out of JPMorgan and others in the financial-services sector in conferences earlier in the week. “Late last week we essentially sold out of our long bank holdings - based on our growing concerns regarding the commercial real estate space and other credit fears, rising deposit (funding) betas and the likely economic consequences of the Fed's problems associated with taming inflation,” Kass wrote in his Daily Diary post, “ Banks Bust,” at 7:30 a.m. Get actionable advice from Doug Kass and 30+ Wall Street pros with a Real Money Pro subscription And so did the TheStreet Smarts’ Todd Campbell. ![]() Get all the very best investment advice, market commentary, CEO interviews, and research from Jim Cramer and a team of the brightest minds on Wall Street.Hedge fund manager Doug Kass, author of Real Money Pro's Daily Diary, and Stephen “Sarge” Guilfoyle, who writes the popular Market Recon column on Real Money, for example, earlier in the week gave warnings about the looming risks. Jim Cramer missed the trading floor so much that he created one at Real Money. Every recommendation goes through THREE layers of intense scrutiny - quantitative, fundamental and technical analysis - to maximize profit potential and minimize risk of loss. Get the top 1% of all the stocks available on the U.S. Quant Ratings will put your portfolio through the kind of tough scrutiny it must pass to succeed. TheStreet's proprietary quantitative and algorithmic stock rating service takes emotion out of the equation by analyzing 4,300 stocks every day on 32 different data factors, sifting through income statements, cash flow data, balance sheet metrics, valuation, volatility and much more. The SU10 team digs deep into corporate financials, management assessment, and technical analysis to uncover high-quality, low dollar stocks with explosive upside potential that are flying under Wall Street's radar.īuy this, sell that. Get access to every holding in Jim's multi-million dollar charitable trust portfolio and be sent email alerts BEFORE every buy and sell, plus in-depth analysis of major trends impacting the markets.ĭiscover High-Quality, Low-Dollar Stocks with 50%-100% Upside Potential. ![]() Get instant access to all 7 of these wealth-building resources: ![]() ![]() Access all of your Real Money Pro Portfolio services through our downloadable mobile app, completely FREE with your membership! Analysis and latest trade ideas from our team of professional money managers, market technicians, and respected financial commentators streams throughout the day, including number of shares and price targets, are in Real money and Real money Pro so you can capitalize on developing trends and seize new opportunities - fast. ✓ Weekly strategy updates from Action Alerts PLUS, Trifecta Stocks and Stocks Under $10 keep you up to date on the overall market perceptions, areas of opportunity, potential danger zones and much more. Concise but vitally important, you won't want to miss a single one. ✓ Email alerts arriving whenever important news hits the market or it's time to make a new buy or sell decision, these communiques from Jim Cramer, Chris Versace and TheStreet Research Team are the heart of each portfolio product.
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