More Pain Ahead For the Banks

If commodities was one area of long during the coming fires, the banks are the opposite — the exact place to avoid.

Let me show you something.

Those are the MONTHLY returns of BAC during the 1973-74 recession. Those add up to roughly -70%. At the present, BAC is DOWN 27% YTD. Should we cascade into a full blown stagflation bear — expect to see banks at the vanguard lower. They encompass everything that is wrong and are exposed a half dozen places that can hurt them.

OF COURSE I am talking my book, now long FAZ in size. But even after I close this trade out and move onto bigger and better things — you should expect to see shares of XLF dive the fuck lower as America descends into full blow depression.