OpCo’s Meredith Whitney tells Bloomberg that “once banks are able to grow again, then you’re going to want to look at the stocks.”
Say, what? She won’t turn bullish until banks’ earnings are growing? Meredith, let’s get a grip. The average large-cap regional bank lately trades at 70% of its book value. All banks have to do, therefore, is show they’re done losing money, and their stocks should jump by 50% in a heartbeat, then keep on going.
Investors who wait for actual visibility of sustainable earnings growth will miss 90% of the recovery rally. Truly lousy advice.
P.S. An obsession with growth is what got the industry into trouble in the first place. I’d think that Meredith Whitney, of all people, would be the last one to be plumping for more of it.