These Two Guys Literally Fucked the Asset Management Business and I Can Prove It

Rumors are swirling that President Trump will do away or greatly amend Dodd-Frank — a bill passed in 2010 that was designed by a bitter Congress to hurt Wall Street. Truth be told, Wall Street had it coming, taking into consideration what it did to the country in 2008. However, that didn’t happen in a vacuum and what Dodd Frank ended up doing was leveling the asset management business to ruins, causing massive job losses and a despondency in the business I’ve never seen before.

In a presser today, Trump said he was going to unleash the animal spirits and do away with much of Dodd Frank.

"We expect to be cutting a lot out of Dodd-Frank," Pres. Trump says on financial oversight law in meeting with CEOs https://t.co/2XFXqysjo7 pic.twitter.com/CHPQ8skcRC

— CBS News (@CBSNews) February 3, 2017

Now everyone is jumping into banks, ahead of a lessening of regulations in the industry. But most people are chasing phantoms without even knowing what’s going on.

Using the valuation tools in Exodus, I’ll show you why buying the banks is too late and why you should be buying asset managers and brokerages.

Behold

Big banks’ PE and PS ratios. You’re gonna want to look at the second to last column that juxtaposes the median ratio v the overall industry to get an idea where valuation is now v the previous 12 years.

Notice how valuations are pretty much in line with historical standards?

Now look at Asset managers and brokerages.

Notice the bigly discounts that started soon after Dodd Frank took effect? The Asset management field almost always traded at a premium to the sector. Now it trades at a discount.

Some of the bigger names include $BLK, $BX, $BEN, $TROW and $AMP. But there are a slew of them. As for the investment banks, I’d look at obvious ones like $GS, $MS and maybe go fishing with $NMR or even $COWN.