Financial Sector

There Will Be No “Next” Bank Collapse

There Will Be No “Next” Bank Collapse

It got bumpy out there all of a sudden. Although I was surprised that Silicon Valley Bancorp (SIVB) lit the fuse, I am not shocked that something blew up. Every time the Federal Reserve has a rate increase cycle, something blows up. Signature Bank (SBNY) and Silvergate, on the other hand, were not that much […]

The SVB Effect Is Spreading

The SVB Effect Is Spreading

The only thing markets are watching, at the moment, is the fallout from the Silicon Valley Bank (SIVB) collapse last week. As nearly 50% of the global tech sector banked with SVB, it became an immediate, systemic economic crisis. Around the globe, central bankers and Treasury Departments spent the weekend looking to stem crises across […]

Take Advantage of the Bank Chaos With This Income Play

Take Advantage of the Bank Chaos With This Income Play

Well, that was unexpected. The bank run we saw last week at Silvergate (SI) and Silicon Valley Bank (SIVB) was stunning and completely unforeseen. Unless, of course, you were listening to what I’ve been saying for 18 months: the Fed’s rate hikes make unprofitable, risky companies much less valuable, and fast. But the vast majority […]

Three Finance Stocks On Sale Right Now

Three Finance Stocks On Sale Right Now

With stock prices turning positive over the last few weeks, it’s easy to lose sight of the fact that share prices for many sectors remain down a lot from their early-2022 levels. I was surprised when I recently reviewed some 30-day stock price changes. There remain tremendous, high-yield values in which to invest. Here’s three […]

How Banks Can Deliver Monster Returns

How Banks Can Deliver Monster Returns

I am always hunting for ideas that can boost portfolio returns for individual investors. I read, I ponder, I imagine, I study, and I test these ideas. Many of them end up in the junk pile as good ideas gone bad—these are usually the ones that sounded the most exciting when I first had or […]

Are Financial Stocks Stuck Moving Sideways?

Are Financial Stocks Stuck Moving Sideways?

Based on a large options trade in the Financial Select Sector SPDR ETF (XLF), it appears  a well-capitalized trader believes that financial stocks may move sideways for the remainder of the year.  The trader possibly sold a 5,000-lot strangle in January XLF options.  A strangle involves selling a call above and a put below the […]

How to Beat the Coming “Lost Decade” for Stocks

How to Beat the Coming “Lost Decade” for Stocks

Dear Investor, Bank of America stock analysts recently released a long-term forecast that bodes very badly for investors for the next decade. If the analysts are correct, many investors will not reach their long-term financial goals. But one investing strategy looks to avoid the problem… In October, several news outlets, including Yahoo Finance and Markets […]

Visa: A Bargain Growth Stock

Visa: A Bargain Growth Stock

One of the most well-known names in finance is Visa (V). The company operates the world’s largest electronic payments network, providing processing services and payment product platforms, including credit, debit, prepaid, and commercial payments. Visa traces its roots back to the issuance of the first Bank of America credit cards in the late 1950s. Visa […]

Trade of the Week: XLF

Trade of the Week: XLF

On the day of the FOMC meeting results last week, there was quite a bit of unusual options activity in Financial Select Sectors SPDR Fund (XLF). XLF, the most heavily traded financial sector ETF, traded about 2.5x its normal options volume. 67% of the activity was in calls, which is generally a bullish signal. The […]