By Brian Hunt
The cockroaches are starting to cover the floor.
Back in November, we ran a chart of the iShares Financial ETF (NYSEARCA: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 (NYSE:C), American Express (NYSE: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.
click to enlarge image