Friday 10 April 2009

short 'em

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. VoilĂ ! 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.

4 comments:

Jim said...

Rebalance?

Is that your way of saying, "pound a quart of Old Grandad then try to stand up?"

Dave K said...

It could be that, for sure. Or it could mean that it's time to take any remaining financial or blue chip positions you have and throw them into precious metals and energy. Government securities seem to be safe havens when these wild downturns happen. Why not at least be a creditor so when we go back to 50% tax rates in a few short months you can pay yourself back? Of course that doesn't do anything for you on the inflation front - hence precious metals and energy. Dollar denominated assets, your only port in the shit storm that is the inflationary hurricane on the horizon.

My word verifier either thinks you should buy diamonds or crack cocaine - "moroc" - but I disagree with this advice. Demand for diamonds worldwide is evaporating, and I just can't get behind crack.

Dave K said...

okay clearly the word verifier - "redbudd" - is on a toot about legalizing drugs, a policy with which i generally agree. although i still can't get behind crack. we might all need a little redbudd when this shit goes down.

Dave K said...

now it says "state" which means the man is hip to my word verifier. gotta go put on my tin hat and drive to baltimore and meet gene hackman.