New highs in the market’s means higher fees for asset managers, more ipo’s, secondaries, and of course earnings per share. I know you might think it’s a little late to buy into the sector, but only if you think the market is topping out. Some people I know have believed the market was going down for 15 years now. Through all of the negativity and depression, these persons have missed the boat, watched others get rich in their stead.
Don’t be that guy, the homosexual at the cocked-tail party who proclaims doom and gloom is upon us. Even if it were true, no one wants to hear it. Successful people are attracted to positivity. It’s too hard to get the short trade right for the average millionaire, whose sole interest is to outperform the S&P. If that’s your stated goal, look no further than the asset managers.
I still own GS from $138-$143. I sold out of WETF because I wanted to move up the ladder in market cap. Being that I had a 15% gain, I thought it was prudent to take profits and reduce risk.
There are several other names worth looking at in the space.
Regional brokerage: SF
National brokerage: GS, PRI, NMR, MS
Asset Managers: KKR, APO, WDR, OAK, PJC, FIG, CG, PFG, BLK, WETF and AB
Life Insurance: MFC, PRU
There is a whole litany of regional and money center banks who are benefiting from the great big US housing recovery. But I am not interested in any of that, from a banking standpoint. I am also not interested in serial underperformers, with hopes that investors will WAKE UP to its intrinsic value. No.
I am only interested in buying names that will outperform the overall market, without all of the fuss of having to endure an outlier. In my estimation, BX, APO, GS, OAK and MFC fit the bill, quite nicely.If you enjoy the content at iBankCoin, please follow us on Twitter