Banks

This was your Barron’s headline cover on Saturday. Yes I know they will say they have a “long term view” and don’t care about those silly little market fluctuations. In full perma bull style, stocks are always a buy right? Dips are just an annoyance and temporary at best. It is Abbey Joe Cohen’s favorite place to make grandiose predictions that are always downgraded at a later date. But they sounded good at he time I guess.

We have seen all the big boys report earnings now, $GS, $BAC, $C, $WFC and $JPM.  As usual, Morgan Stanley $MS always reports last and is usually the victim of a bad tailwind.

Banks are utilities and should trade that way. There should be no surprise that they are failing and will most likely continue to do so. Here are some thoughts I penned back in early June.

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