• 756 days Will The ECB Continue To Hike Rates?
  • 757 days Forbes: Aramco Remains Largest Company In The Middle East
  • 758 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,158 days Could Crypto Overtake Traditional Investment?
  • 1,163 days Americans Still Quitting Jobs At Record Pace
  • 1,165 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,168 days Is The Dollar Too Strong?
  • 1,168 days Big Tech Disappoints Investors on Earnings Calls
  • 1,169 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,171 days China Is Quietly Trying To Distance Itself From Russia
  • 1,171 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,175 days Crypto Investors Won Big In 2021
  • 1,175 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,176 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,178 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,179 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,182 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,183 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,183 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,185 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Financial Hedge

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.

Price Structure: Banks:SPX-Banks-SPX
Larger Image

 


(Positions in UUP, & ZSL)

 

Back to homepage

Leave a comment

Leave a comment