Well the market is roaring again. The Dow is up a fat 150 today. Thats another 1.5% for you scoring at home. 16% on the year. The S+P 500 is even better. Up 20% year to date! So I have to recommend a stock to buy, dont I? I mean I shorted Goldman Sachs and General Electric the other day. I must have something I like right? Or am I just some foolish delusional assclown selling stocks in a beautiful economy?
I actually do have a stock I like finally today. I've been waiting to buy this one since I sold it in July at 38.5. Now the stock has good potential for growth and Eric pointed out to me that it has provided real solid returns in the past. Of course, my charts have also given the "Buy" signal. So lets do this thing. Oh the stock? Well its an Exchange Traded Fund (ETF) that represents 2x the opposite of the Dow Jones U.S, Financials Index. The ticker is SKF!
Come on. You didnt think I was really buying a stock in this fake rally did you? Hell no. This SKF is a double down bet that the banks are going into the crapper......again!! I invite all the naysayers and the disbelievers to comment. I also am aware that the SKF isn't necessarily the best vehicle to do this if you have a long term view but I don't care. I think this is a good product for a nice short term trade and I'm playing. The banks haven't begun to take their licks in their Commercial Mortgage Backed Portfolios and there is some OBSCENE amount of loans that are going to need to be refinanced in 2010-2012. Guess what? They aint gettin refinanced. Nobody but the governments have any money to put to use. And that money is borrowed money. No likey. Buy SKF and watch it go up, up, up as many banks go, as Mike Tyson once said, "into Bolivia."
A house built on a bad foundation may indeed hold up quite well and for many years in rough weather. You obviously know that there are cracks in the foundations of many a banking stock...and I agree. Getting the house to fall...is another thing entirely. The US government does not want to see bank failures and has done everything it can to help these guys out. When the cracks begin to spread and the public becomes aware of the problems in the CMBS market, our govenment will do everything it can to fill in the cracks and shore up the system. It is very difficult to bet against the government...and win. Possible though... just not easy. JMHO
Posted by: Bruce | November 10, 2009 at 02:41 PM
If anything, I'll do my part to short the greedy banksters. It's the least I can do.
Posted by: g | November 09, 2009 at 04:18 PM