With profound weakness in [[BSC]], [[WM]], [[ABK]], [[SOV]] and [[CORS]], I suspect many investors are biting the bullet and taking losses on financials.
Although the short financial trade is crowded, it may still work, for much of 2008. The share prices are down, but do not reflect a bad 2008, yet.
Most people are still gingerly optimistic about a 2008 comeback, particularly in the brokers.
How about a big bankruptcy?
Well, we haven’t had one yet. I suspect there will be some sort of capitulation day in 2008, on the back of a “gigunta” bankruptcy, which will allow the sector to bottom.
Until then, I want to be short [[C]], [[BAC]], [[JPM]], [[AIG]], [[WFC]], [[GS]], [[AXP]], [[MS]] and [[FNM]], via [[SKF]].Comments »