tk77mann

Wells Fargo Jumps on the Dividend-Cutting Wagon

I would not worry too much about missing out from a "rapid recovery" of financial stock share prices. This recession is going to be a doozy, unfortunately, and we will be lucky to come out of it within a couple years. Consumers have been creamed by the economy and they will not recover quickly since so many jobs have been lost, with more to come. Banks will not do much lending in this kind of economy.

Since banks' balance sheets hide so many toxic loans and their profitability is undependable, I am moving out of these shares into more dependable stock investments. I believe lots of other investors are doing the same, which will keep bank share prices down for a LONG time. Not going to be fooled a second time . . . .