US Banking Slump Will Create Bargains… But Not Yet
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Brian Hunt says the collapse of the US banking sector will one day lead so some fantastic bargains. He also says investors should avoid it like the plague for now…
The cockroaches are starting to cover the floor.
Back in November, we ran a chart of the iShares Financial ETF (IYF). This basket of Wall Street banks was down from its peak around $120 a share to $100. A few cockroaches had crawled out of the mortgage mess and into mainstream headlines. I forecasted more would crawl out of the heap before it was all done.
Today’s chart confirms that forecast. This fund is loaded with the likes of Lehman Brothers (LEH), Citigroup (C), American Express (AMX), and all those on the hook for thousands upon thousands of silly loans. The cockroaches have arrived, and IYF’s chart resembles the last second of a javelin toss.
The IYF has been sliced in half in one year. There is a crisis in Big Finance right now… and crisis leads to fantastic asset bargains. But damage like this takes a long time to repair. My advice? Check back on Big Finance in a few years.
Source: As Predicted, the Cockroaches have Arrived
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Tags: AMX, Brian Hunt, C, credit crisis, IYF, LEH, subprime, US Banking, US stocksAbout the Author
Brian Hunt is managing editor of Daily Wealth.
The DailyWealth mission is to show you how to avoid risky investment, and how to avoid what the average investor is doing. We believe that you can make a lot of money and do it safely by simply doing the opposite of what is most popular.