The last couple of weeks have been pretty brutal for the stock market. The volatility has skyrocketed and a lot of it has to do with irrational fears about Greece. I have said it once and I will keep saying it. Worries about Greece and Europe are completely overblown.
Financials were the clear winners today, particularly regional banks. I have been pounding my fist for the past few months about financial stocks. They’re likely the first ones to recover when the market turns bullish. A lot of bank stocks look particularly cheap because they have such low price-to-book ratios. A good example is Superior Bank (NASDAQ: SUPR) that has book value of $16.43 but is only trading at $3.25. On the surface, it looks like a bargain but you have to look more closely at the company to get a clearer picture…
I read this interesting article about fund managers buying heavily into bank stocks lately. It left me thinking — do they know something I don’t? Well, for one, these fund managers are closer to the banks than I am and are definitely more familiar with how large financial institutions work. Some of these guys are in charges of billions of dollars so [...]
