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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (5947)	1/9/2000 7:32:00 PM
From: TRIIBoy	Read Replies (1) \| Respond to of 10293

Warning for your bank picks bill. Read this: Investors always need to be on the lookout for forces that can affect a whole industry. Indeed, one bank-stock hedge fund manager who requested anonymity looks at the pressure on earnings and arrives at the following diagnosis: Banks are in the process of reverting to a lower level of profit growth after a decade of big changes that only temporarily boosted profitability. This runs contrary to the prevalent view among analysts that a new age of finance has begun, in which most large banks' profits can increase 10% to 15% a year over the next few years. By contrast, the hedge fund manager says banks' earnings will slow right down and grow around the same rate as the economy, which is 4% to 6% a year (not adjusted for inflation). Few banks' profits will manage to exceed that, he says. "We're just getting reversion to the mean," the manager adds. thestreet.com