Seeking Alpha

Cumberland goes underweight banks

  • “It is now obvious to us that the continuing objective of the Obama administration and the U.S. Attorney General is to punish banks and finance," writes Daivd Kotok's Cumberland Advisors, explaining a decision to underweight the banks.
  • The firm previously had been overweight the regionals via the KRE and just two weeks added exposure to the larger lenders through the KBWB, but has quickly decided to reverse that move. "We were wrong" in thinking the "persecution" of the banks was near over, says Cumberland.
  • "The investment strategy we pursued for our clients in this case was not to confront the U.S. Attorney General with an overweight position in a sector that he views as adversarial.”
  • Related ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, PSP, IYF, EUFN, IAI, KIE, IPF, IAT, SEF, IYG, IAK, PFI, FXO, IXG, KBWB, PEX, KME, RKH, QABA, FINU, KCE, KRU, RWW, KBWR, FNCL, RYF, KBWI, PSCF, FEFN, AXFN, KBWP, KRS, FINZ, EMFN, KBWC, KBWX
Comments (6)
  • Tom Armistead
    , contributor
    Comments (5501) | Send Message
     
    Immaturity and a bad attitude makes for poor analysis. Only the guilty are being punished. There's no reason not to own regional banks, where it is possible to verify integrity.
    27 Jan 2014, 02:58 PM Reply Like
  • lcrupp
    , contributor
    Comments (43) | Send Message
     
    If the guilty were truly being punished, Barney Frank would be on bread and water rations.
    27 Jan 2014, 07:28 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5501) | Send Message
     
    I didn't say all of the guilty are being punished.
    27 Jan 2014, 08:37 PM Reply Like
  • Rhee Ali Tee
    , contributor
    Comments (46) | Send Message
     
    Mr. Kotok must have his money on the Big 5, as the regionals will very likely benefit. Obama and the Attorney General ought to punish the Big 5 though, as the regionals have suffered from the big bankster's recklessness and Main Street has not benefitted one iota either.
    27 Jan 2014, 03:06 PM Reply Like
  • Ta0
    , contributor
    Comments (468) | Send Message
     
    Oh puleeeeze. Cry me a river. After robbing the American public blind, they get some corporate welfare bail out money, and the executives take their multi-millions and go sailing off into the sunset.
    28 Jan 2014, 01:43 PM Reply Like
  • rcpatrick5443
    , contributor
    Comments (742) | Send Message
     
    Toddler whining from Cumberland ...
    2 Mar 2014, 02:28 AM Reply Like
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