Meredith Whitney was on CNBC yesterday chatting with Maria Bartiromo about her call on municipal bonds.
Toward the end of Whitney’s discussion, though, she shifted her focus to the current state of Wall Street.
With Ben Bernanke continuing policies that support the equity market, stocks, especially financials, have been doing pretty well. So is it time to start putting your money on (and not just in) banks again?
“The large banks I don’t like so much… What the banks will do in Q3 is write up assets because of the QE3 purchasing programs so you have a risk-on trade… a trade is not my idea of investing. I like to buy long term growth investments…We’ll see what happens with the mortgage purchase going on. I think Wells is going to be an interesting name… Wells has a very large mortgage portfolio.”
As banks are forced by regulation, Whitney explained, there will be winners and losers. Those winners will likely be the banks “around the edges.”
As for layoffs Whitney still thinks we’ll see more.
“The banks have been overstaffed for a really long time. If you think about all of the other industries that have gotten more competitive, more profitable, the banking sector and the insurance sector have been laggards behind it, and they employ a lot of people…I mean, I think the industry’s as bad as I’ve seen it, so now’s not the best time to be on Wall Street.”
Makes you feel all warm and fuzzy inside, right?
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