There seems to be a war between Wall Street and Washington. The latest bombshell from Washington is Obama's plan to restrict the investment activities of banks. He does not want the banks to take high-risk, high-return trades. This limits the ability for banks to grow and prosper with the money they have for investing.
For the stock market, this means less money will be available for pushing up stock prices. Currently, a lot of people and institutions are taking profits while they can. The best way to play this scenario is to buy FAZ, an ETF that shorts bank stocks. The banks will no longer be able to grow as they expected, and their stock prices will go down along with probably the economy as well.
For other long or short stock picks, visit ClusterGains.com.
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