Seeking Alpha

TradingMarkets David Penn says bank stocks are the classic contrarian opportunity right now,...

TradingMarkets David Penn says bank stocks are the classic contrarian opportunity right now, and, for savvy investors, its time to reconsider adding them to your portfolio. He recommends looking for ones that have made short-term pullbacks while still in bull market territory, such as those still trading above their 200-day moving average. His favorite picks: Wells Fargo (WFC), Keycorp (KEY) and U.S. Bancorp (USB).
Comments (6)
  • bones2180
    , contributor
    Comments (64) | Send Message
     
    High enough to buy typical sell side analyst wait for confirmation then tell people to buy. USB has been in an uptrend for 6 weeks. Wfc is up from 24 to 29 in less than a month. Where were you then, never fails.Now you hide behind the decoupling call instead of fundamental research. Wow Key real gutsy call there down from 10 to 7 now at 8 what's your target 9????
    5 Jan 2012, 10:34 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Banks are not a contrarian play.
    5 Jan 2012, 11:08 PM Reply Like
  • varan
    , contributor
    Comments (3904) | Send Message
     
    KRE, the regional bank ETF, is already up 5% for 2012. Too late?
    5 Jan 2012, 11:36 PM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Would not surprise me to see KRE go up another 15-20% by end of year, or more. It is down nearly 50% from it's 2007 high, so it could go up 100% and be where it was 5 years ago.

     

    I prefer individual stocks to ETF's unless I am just parking money for a while, and am looking at (http://bit.ly/y0UsDW) and (http://bit.ly/yN9CUZ) in addition to what the author mentioned.

     

    But like others have noted, this is not contrarian anymore.
    6 Jan 2012, 01:21 AM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    This is more of the January effect when really beaten down stocks outperform at the beginning of the year.
    6 Jan 2012, 03:32 AM Reply Like
  • sharegyan001
    , contributor
    Comments (2) | Send Message
     
    If you are trading in NSE, BSE, MCX and in NCDEX then let sharegyan give you all stock trading gyan
    6 Jan 2012, 03:55 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector