Financial sector turning around, or just a dead cat bounce
July 24th, 2008
The past two weeks have been very forgiving to the financial sector. Even as banks are writing off billions of dollars of bad loans and pumping up reserves to get through this downturn, it seems like investors are starting to find a bottom. After watching XLF, a SPDR for the finance industry, tumble from $36 in May of 2007 to $17 this July it seems like some are finding a place to buy.
Though the catalyst behind the finance industry’s fall is far from gone, the share prices of most banks have been deemed to be oversold. We’re trading prices here, not the subprime housing market. Read more…
