It's the biggest Wall Street debate of 2022... Are we in a bear market... or not? Everyone has an opinion. On the one hand, I could easily make a case that we ARE in a bear market... But on the other hand, I could easily make a case that we ARE NOT in a bear market... There are plenty of facts and statistics to support both arguments. However, if you're looking for one final, conclusive and definitive answer, I'm here to tell you it'll come tomorrow. Specifically, the answer will be revealed when some of the major financial stocks report earnings. You see, as I've been telling War Room members for weeks, financial stocks are cheap right now. Very cheap. For example, Bank of America (NYSE: BAC) trades at 1.1 times book value, and Goldman Sachs (NYSE: GS) trades at parity to book value. This means that if Goldman were liquidated tomorrow, the value of its assets at auction would be equal to the value of all of its shares at their current price. Historically speaking, buying financials at these levels has been a savvy idea. What's more, all of these major financial institutions recently passed this year's Federal Reserve stress tests - which means that they're prepared to withstand any further market weakness (should we see any). But here's why tomorrow is so critical... |
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