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Strategies & Market Trends : Short Selling, Dark Side, Bubble Busting Laboratory

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To: YanivBA who wrote (336)8/28/2006 3:23:55 PM
From: Perspective  Read Replies (1) of 361
 
Financials have always lagged in bear markets as far as I can tell. They are presumed to be the beneficiary of counter-cyclical actions by the Fed. Ceding ever increasing wealth to the financial industry is the price of our newfound economic "stability".

They only get nailed when there is a confidence crisis and credit spreads start blowing out, when things are bad enough that asset quality comes into question. They're kind of an economic pain threshold detector.

It is not surprising to me that they would be the dead last of the groups to go into the dumps.

BC
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