As David Tepper pontificates why he didn't clear the deck of all his financial holdings - consider this contrarian thought.
Is buying the banks here at the very least a hedge?
You will notice that during the early bear market days of the past decade the banks actually outperformed the swooning SPX by a wide margin. This was in part due to their complicity in the housing bubble. It remains to be seen where their business model will take them today, considering the housing market is still bleeding.
However, we know that corporate America is flush with capital and will eventually turn to the banks for distribution. And yes, it will all be quite eerily similar to the easy money days of the housing bubble. But instead of your 24 year old nephew Jimmy buying an apartment building in Newark - it will be Groupon buying GE.
Food for thought.
(Positions in UUP, & ZSL)
