Barry Robbins

U.S. Banks Putting 'Lipstick on a Pig'

At this point, after a big run-up in financial stocks, I can't see why you would buy C or BAC. Is there still more upside ahead? Also, you didn't mention the huge "trading" gains most big banks made on the AIG govt-sponsored CDS payoffs. Obviously, now is a "sit on the sidelines" time for the stock investor. The only remaining decision is whether inflation or deflation will result. Weiss mentioned in the Bloomberg article sees deflation. Others like Schiff, see inflation. In the short term, I see inflation, so I am putting a lot in Gold and Silver (CEF and GTU).

As Merrill Reports, Short Squeeze in Financials Continues

Even if you are a long-term investor, the financials are seeing enormous losses and enormous share-dilution. A long-term investor in Citi would be down over the past 10 years. I would think a long-term investor should be focused on a company with solid earnings, solid return-on-capital, and a low PE. The financials just don't fit this model.

Financials Offer Patient Bulls Many Opportunities

I read today that 10% of the homeowners in the entire country have negative equity in the their home. This is terrible because when people need to move, then they will have to take money out of the stock market, just so they can "sell" their house, if they are even able to find a buyer.

Home prices have risen far above the historical average. Until home prices come down by 20 to 30%, I can't buy any financials. Also, hundreds of billions in writedowns have essentially been hidden in the monoline insurers (MBIA & Ambak).

I know eventually financials will be a great buying opportunity. I just think the time is still a year away.