Wells Fargo reported a record quarter yesterday. Got that? Does it make any sense to you that a bank, right now, should be breaking records for performance? Me neither. What they really set a record for is accounting chicanery, all done with the full support of the Fed. Billions worth of assets had been marked down and now get marked up with this new rule that makes their cap rates seem better. Voilà! Record results.
BofA went up like 35% yesterday. Think that's gonna last? This earnings reporting season is going to be really bipolar - big results amid lots of bad reports. My take is that it's going to be a good opportunity to rebalance.
Not enough riding this week, too much other more important family and other stuff happening.