Analyzing Banks
Be extremely careful of Wall Street analysts telling you how good or bad a bank or insurance company is.
The current deep recession, like all recessions, is started when business people and consumers get pessimistic and stop spending or buying.
Rumors are often bandied about about banks, fomented by bank analysts who cannot possibly see a bank’s asset portfolio, and make for self-fulfilling events. Especially when bank holdings must then be marked to market. Fear frenzy takes hold as analysts persist in this self-fulfilling bearish sentiment. This occurred to help exaggerate and set off our current deep recession.
Bank analysts are never privy to actual derivative portfolio information. If they were, they could not understand the inherent complexities within each institution. Yet every negative word they utter can doom the soundest financial institution, to the point where that organization truly becomes insolvent.
About Me
- Earl J. Weinreb
- I have been a senior Wall Street analyst, a top public company officer and director and independent business operator, as well as a past freelancer for such publications as Barrons® Trusts & Estates®, the Financial Analyst®, and a number of business and retirement journals. I am the only researcher to have studied and then further documented and individually investigated over 1600 strategies used on Wall Street. And I have looked at their pros and cons and other characteristics as they apply to professional and average investor use. What works best is the disciplined use of strategy with original purchase, not seat-of-the-pants decisions in midstream. In addition to being a senior investment analyst for a major Wall Street firm, I was an original investment researcher. To top that, I became a senior-level executive for public corporations, to see what it was like to be in actual business. Most Wall Street advisers have never operated a successful pushcart. A profitable publicly-owned firm I started from zero, grew to 74 coast-to-coast offices, by the time I sold my interests.
automat
No comments:
Post a Comment