|Day Low/High||157.03 / 160.78|
|52 Wk Low/High||82.40 / 163.73|
The market has turned a blind eye to the economic challenges that lie ahead as the focus is on the government's massive creation of liquidity.
There is no joy in stockville -- instead we have big companies with stocks rising. Here's why that is and what you need to understand about the rally amid the crisis.
Earnings season started with a mixed bag of reports.
Tests, masks, contact tracing, anti-virals. Are those too much to ask?
* Bank stocks have broken out technically - a good thing (see Rev Shark's comments below) * The fundamental outlook for banks is excellent - an even better thing * The banking industry's excess capital position, the power of its deposit base and abs...
I did warn publicly back in another epoch that quantitative easing would lead toward increased consumer level inflation.
The current market action looks similar to what occurred in mid-February.
The banks are changing their stance, so let's see what the indicators say.
In view of the obvious economic issues that the market faces, it is interesting that sentiment is not more negative.
I do think the key to reopening this economy is one of greatly expanded testing for Covid-19, once a reliable treatment has made it past clinical testing, and into mass production.
Forget the issue of a retest of the lows for now and focus on new areas of technical support.
I am not convinced that JPM, and most banks for that matter, will quickly return to the kind of profitability they have seen in the past.
* My revised levels I don't want there to be any ambiguity about the size of my positions or about my buy and short levels as I strive for as much transparency as possible. "When the time comes to buy, you won't want to." --Walter Deemer "When the t...
It could make the difference if the debt and equity markets remained thawed after a brief period of freezing.
There is no doubt that this is the most aggressive and pro-active Fed since at least the days of Paul Volcker's tug of war with consumer level inflation, not to mention the Reagan administration.
The move by the Fed toward funding small business loans from banks will allow banks to increase their exposure to the program. Color this positive for bank stocks. Meanwhile, from my perch, the media misinterpreted Jamie Dimon's comments about JP Mo...
CEO Jamie Dimon is back and the firm is in good shape, even if times are rough, so I plan to add on weakness.
* Morgan Stanley, Goldman Sachs and Wells Fargo are on deck this morning * Will 2021 mark a renaissance for investment banking and for investment bankers MS and GS? * There is an opportunity today to become a "partner" in Morgan Stanley and/or Goldm...
Several moves in stocks I am involved with: * MKM upgrades with a $64/share price target. (The shares are +$2 or +4%) * Goldman place on its Best Ideas List with a $61/share price target. (The share are down by-1%). * Keefe upgraded with a $120/sha...
* Will be forthcoming... At all times, but particularly during a crisis, circulating bottom-up investment ideas is of paramount importance. Don't get me wrong, a market view is very important - and so is the analytical discussion surrounding that ma...
'The Fed has just put the economy in an induced coma, attaching it on fiscal and monetary life support, hoping that when the time passes it can be brought back to life.'
* On Monday I analyzed/stress tested BAC (my second favorite bank stock on reward vs. risk basis) * Today I look at revised EPS and price target models for JPM and C (my current favorite bank stock) * I continued to add to my money center bank holdi...
* Over the weekend I "stress tested" Bank of America's earning projections (and that of the other money center banks) * The Covid-19 inspired recession will result in only about a 5-6 quarter long push back of normalized EPS for BAC * Though earning...
I do believe that having no economy is temporary. I also believe that what comes out on the other side will be smaller, far less global.
Consider these stock model ideas: virus groups, work remotely, and fiscal.
Take a rest from the chart of 2010 to see some similarities from two peaks about 12 years ago.
At the end of the day, investors really have only three choices to make when managing an investment portfolio -- buy, hold, or sell.
* Before you read this opening missive be sure you understand your risk appetite and profile as well as your time frame * I see a possible "generational" investment opportunity developing and I am now even more aggressively buying for the intermedia...
Be clear about your trading and investing style and don't confuse a bounce with a bottom.