I’ve been there before….The right side of this chart is a painful place to be. The financials got squeezed like a lemon today. I just don’t think you can step in front of this freight train until after they report earnings. There is a good reason why the treasury is delaying the release of their stress test. They want the banks to report their “better than expected” (ha) earnings before they disclose that Wells and the others all need billions in more capital.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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