Hi FIFO,
Those were certainly some market inefficiencies you reference.
I do not think I've ever owned a bank stock. I would have to be a state or federal examiner to have confidence on a bank. The details of bond losses, loan losses and who has so much in the bank as deposits, would require far more than what banks disclose. I remember my Dad having a repo'd vehicle out in front of the bank. He really disliked making loans.
He loved taking conservative German farmers savings and buying munis or notes which were always held to maturity.
That being said, he knew and lived in a small community and had a great relationship with people who had never established credit, but knew my dad. He also knew where they lived, and they also knew that. LOL
The world has advanced from those simple times I suspect even in a small rural bank. Lord knows what regional banks are like with bigger money, bigger loans and no doubt bigger problems.
Really good to have your input here on this options thread. It is always good to have another brain and set of eyes to view another set up not seen by most!
My option plays are very simple and on utility like companies. Seldom do I stray far from the dividend aristocrats or those who once were and try very hard to get back to where they reduced their dividend in an effort to complete a turnaround. I have done options on some semi equipment companies AMAT, CSCO, BRKS and COHU. In there previous maturity stages, with the PC cycle swings, they learned to not have debt and have large caches of cash. The swings hurt their business , but you knew they would survive to grow again on the next cycle.
Thanks for the well reasoned post!
After a Black swan event, selling puts on a stock's minor dip after months of flat line price movement, is the safest and easiest money there is to make. IMO 2000, 2008 and 2020 come to mind.
Bob |
