After a one-month mini-bear market to start the year, Bank of America (BAC +2.8%) has rebounded,...

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Whitehawk Comments (2809)
 
The XLF has a long way to climb to reach its 2007 high (it has to more than double). Cheap Fed money is doing wonders for TBTF bank balance sheets and earnings. Financials have led this rally. Can this continue? Yes. Should it? No, but let's not confuse the two. Trade accordingly, and watch out below, as NYSE margin debt has spiked to a multi-year high recently.
12 Feb, 02:24 PM Reply Like

Chris DeMuth Jr. Comments (1751)
 
The banks have been doing well. Now that SSE is getting bought, my favorite values with catalysts among the banks are OSHC and OBAF. Further reading if you are interested:

http://seekingalpha.co...

http://seekingalpha.co...
12 Feb, 03:49 PM Reply Like

Joe Springer Comments (1250)
 
Chris do you agree with Mr. Mason about there being a lot of smaller banks waiting to go under?

http://seekingalpha.co...

..and if so, any candidates you like?
12 Feb, 04:21 PM Reply Like

Chris DeMuth Jr. Comments (1751)
 
Good question. Yes, a lot of smaller banks are waiting to go under. Many are uncompetitive at their scale, especially given corporate costs and the difficulties associated with regulatory compliance. If one looks at institutions such as SSE, they were too small and needed to get bought. If someone wants to buy such banks, as was the case with SSE, then they will be fine. Otherwise, they should file.
12 Feb, 04:25 PM Reply Like

MexCom Comments (2799)
 
Last night's call by the President to ease up on lending restrictions to allow people to refinance on on top of recent real estate value increases should continue to kick this baby up. Could see the 20's by EOY.
13 Feb, 06:16 AM Reply Like