On Thursday, Moody’s downgraded 15 banks. On the surface it seems counterintuitive, but the downgrade is positive for JP Morgan (JPM), Morgan Stanley (MS) and Bank of America (BAC) . My 30 years in markets have taught me that it is always positive when an overhang is lifted. Back in
It appears that a big European bank got close to failure last night. European banks, especially French banks, rely heavily on funding in the wholesale money markets. It appears that a major bank was having difficulty funding its immediate liquidity needs. The cavalry was called in and has
After studying the details of the debt ceiling deal, here is a list of action items that all investors should consider: Short sell nursing home stocks. On our radar screen are Skilled Healthcare Group (SKH), Sun Healthcare Group (SUNH), and Kindred Healthcare (KND). Buy banks with strong treasury exposure. On