Financial stocks soared Wednesday morning when investors found out the Obama administration plans to create banks to absorb the bad assets weighing down the financial system. The S&P Index rose for the fourth straight session. Investors have been critical that banks won't be able to resume more normal lending without dumping off bad debt on the balance sheets. And the economy will be unable to recover without improving in lending and consumer confidence. The confidence sure rose as Banks skyrocketed: Wells Fargo & Co (WFC) up 25%, Citi (C) jumped 19%, and Bank of America (BAC) up 16%. Investors also were excited for the news as the House nears the vote on the $825 billion stimulus plan. Wall Street is hopefully such measures will help free up the economy from the worst recession in decades. We are not at the end of the recession yet but i see the it coming to an end by 2nd quarter and the U.S. economy. Currently Banks are a little high. I see Wall Street having one more correction with 10%+ losses from these companies on the day which will make a perfect buy opportunity.
0 Comments:
Post a Comment