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.