Week of April 12
For those of you who passed simple math, 2+2=4
For those of you who understand a successful merger/acquisition, the goal is the combination of the two companies to yield more than their separate parts, essentially 2+2=5
Anyway, what you saw in Wells Fargo is going to happen over the next 5 weeks to the entire banking sector as well. If you cut the rate at which banks borrow to finance their loans, that increases their profit margin. Expect either a blockbuster quarter or a write off, but the blockbuster is more likely in my opinion.
Get ready to either be positioned in these stocks or miss the boat.
Tuesday: Goldman Sachs
Thursday: JPMorgan Chase
Friday: Citigroup reports
Where is the play? FAS. Further, I like Citigroup over JPM and GS, cause --- it has the most upside.
If I owned AIG, I'd sell out at $5 if it ever gets that high. The old CEO laughed at management's decisions since he left, go figure. Pass the blame.
If you're into insurance, GNW, PNX, and CNO are the ones I'm riding.
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Glen's Musings — AI, investing, and building things. Occasional. Free.
Glen Bradford
Investor · Builder · Writer
MBA from Purdue. Former hedge fund manager. Holds 26 series of Fannie Mae and Freddie Mac junior preferred stock. Built Cloud Nimbus for Salesforce consulting. Author of Act As If. Writes about investing, building things, and the longest financial fraud in American history.
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Read moreDisclaimer: This blog post reflects the author's personal opinions at the time of writing and is not financial, investment, or legal advice. Glen Bradford holds positions in securities discussed on this site. Past performance is not indicative of future results. Do your own research and consult qualified professionals before making investment decisions. Some content on this site was generated or edited with AI assistance.