Re: Well you might research stocks that are solid but with a large short interest and large institutional ownership. They should get a pop
Who is to say they won’t ban short selling on another sector next week?
The rules keep on changing.
Not a good thing for a supposedly transparent market. Lately, the USA financial system resembles more of a banana republic than that of an industrialized nation.
They (Bush,Paulson,Bernanke) are doing the right things. Any student of the Great Depression will acknowledge that the Fed govt and Banks should have done exactly what is being done now.
It’s not fun to watch nor is it calming at the outset. But it will stabilize and the spector of bananas will fade.
The markets were rigged, margin and leverage were outrageously high, the new rules will return markets to an environment of the 1980s and early 1990s and it wasn’t so bad then. In fact the 1980s were extremely good for investors.
Right now there are opportunities and the USA is still the first class capitalist country leader in the world and will be for our lifetime.
So all the sour faces don’t bother me. The country needs to flush out the bad apples in financial institutions. The only thing that will make me doubt will be a lack of investigation and bringing the culprits to justice. Right now the blame game is just getting started.
I made a fortune after Ken Lay, Fastow and all the Enron miscreants were brought out into the open. I invested heavily in the IPP sector when it was thrown out with the trash. Just look at a chart of TXU to see what I mean.
So this is an opportunity. Over the next three years I will be monitoring the financial sector. Right now it is volatile and I don’t expect it to come back right away even if there are spectacular one-day gains.
Home builder stocks seem good to go for now. Buffett’s buying and they seem to have bottomed and are gaining.