DSX Lover

Still Too Early For Banks

Banks are way to cheap right now, but you can't owe them, you can only rent them. They aren't going broke, and not all are the same, but the resets peak in June and July, they are worth the risk. Totally Agree with Papa Bear Doug Kass comments (The value of the Franchises are intact and the earnings power is there), Buy the DIPS sell the RIPS. You must owe some of these, because when housing inventory starts to decline they will be up 20-40% from where they are now and you will be late to the party.

14 Bank and I-Bank Write-Downs

If you think the worst is yet to come, then give the disclosure of what you own, or short of. These article is not helping anyone make a better investment decision. 400,000 New houses in Inventory, 600K estimated 2008 sales, although I Don't believe any of those two(1.750 Million were sold in the peak year). 4 Million existing home sales on Inventory, 1 Million foreclosures last year, 1.3 estimated for these year. All the foreclosures don't add up to $1 Trillion in these estimates, and if they are repackaged at 50% discount, there's a maximum of $500 Billion in loses. I see $250 Billion in writedowns so far, so the worst is clearly over. Homebuilders inventory, has gone down considerable, and once Existing Home sales inventory drops, we can look forward. With Banks selling at 60-80 cents on Book, its the best time to go long NCC, RF, FITB, HBAN, because those Europeans monsters are full of cash, and looking to invest. Other midsize Regionals selling close to book are BBT, CMA without subprime crap.

Financial Stocks to Buy When the Market Reverses

UYG is the Double Long ETF