What to do with financials?
So, here is the basic dilemma investors find themselves in.
Who to believe? They both have been dead on and are considered the best. Regular readers know my stance on analysts as a whole, but, I will give credit where it is due. When it comes to banks, these two have made calls that look prophetic.
The answer to this one depends on your time frame. If you are looking to cash in in the next month or two, I think Whitney may be your guide. I do not agree with her dire stance though. There may be individual instances of failures on a small scale and even Bernanke has admitted that. The sector as a whole though does not have much more downside. I think she may have over extended herself on that one.
Now, if you do not mid waiting for a while and collecting a nice fat dividend in the meantime, Bove is your guy. Personally I lack the ability to time the markets but even I can notice bad news is not hurting us very much anymore and that is a sign that expectations are lousy and people are beginning to look past them to the future.
I think when we look back at this years from now, both will be able to claim some sort of victory. Currently I hold Goldman Sachs (GS), Citigroup (C) and Wachovia (WB) and have no plans of selling any of them anytime soon.
We’ll see…
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