Kass Says Buy Financials
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Doug Kass, over at RealMoney.com is saying 'Buy Financials' (AMEX: XLF). Kass said he covered his sector shorts late last week.
Kass, a notable bear, is making the call partly as a contrarian play, but also cites some other notable things: Permanent capital is being replenished, Government policy will not be standing still, the seized-up credit markets will not be a permanent condition, credit writedowns will likely peak in Q4 2007, many managements have been turned over with more likely in the near term, business franchises are intact, financial are statistically cheap against sustainable earnings, financial have dramatically underperformed related to the S&P 500.
Kass has made several prescient calls over the past 6 months and is a must read.
Kass, a notable bear, is making the call partly as a contrarian play, but also cites some other notable things: Permanent capital is being replenished, Government policy will not be standing still, the seized-up credit markets will not be a permanent condition, credit writedowns will likely peak in Q4 2007, many managements have been turned over with more likely in the near term, business franchises are intact, financial are statistically cheap against sustainable earnings, financial have dramatically underperformed related to the S&P 500.
Kass has made several prescient calls over the past 6 months and is a must read.
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