They won’t go bankrupt and are a bet I’ll make to trade north of twice the current level in 2-3 years, conservatively. Even in the mortgage crisis they paid a dividend. They’ve gone to market with bad debt guidance, so we hope a large part of that is baked in the current stock price. Feds keep easy money coming everyone’s way, so one can hope people will pay mortgages and credit cards, or at least not default.
Short term pain, which may mean we’re early some, but if your perspective is long, then building a position now, in my opinion, is not a bad option.
Interesting. I’m not a fan of the financials and WFC looks like it wants to go lower before it goes higher to me. So I agree with you about near-term pain.
What would be the catalyst to bring in the buyers in WFC? And if someone insisted on adding financials, do you prefer WFC over something like JPM - which I think has outperformed Wells over the past five years or so?
Wells Fargo is crap company with lousy management. We can count on them to rip off their customers at every opportunity, but not much else. I have a personal vendetta against them and would never own their stock for any reason. I have zero faith in them as a company. JPM is treating me okay though.
That may be true, but this has the potential to be worse for retail banking than the financial crisis… and WFC is very heavily skewed towards retail. Unemployment is higher now than it was at the worst point of the financial crisis. Deflation is accelerating. Interest rates are super low, which puts pressure on bank profits. Trump is even tweeting about negative interest rates. Looks like we could go full Japan here. Check out what that’s done for their stock market over the past 30 years.
That said, the financial sector has been trashed. XLF is down 31% YTD, SPY is down 9%. Financials will probably converge as we pull out of this - whenever that happens. Bank stocks could very well outperform. If you want to pick a bank, I’d prioritize safety. So, stay away from the smaller regional players, find a bank that’s been able to raise plenty of capital, and make sure they’re not too heavily tilted towards retail banking. JPM would be my pick. Or, just invest in the XLF ETF.
Couldn’t agree more. If anyone feels differently, then watch Netflix’s Dirty Money episode on WFC.
The economy needs to be reopened with investors worries over a 2nd wave of the virus relieved. This second wave threat is now wreaking havoc on markets. If we get shut down again, all bets are off. It’s a free fall.
However, looks like a fresh wave of stimulus is on its way. $3T more introduced by House Dems. I’m still awfully confused on what this will mean short and medium term. Does it just prop the stocks up temporarily? Is it a stop gap until economies are opened then we’re back to normal (doubtful). This probably worries me the most, even more than Coronavirus. I do see this REALLY helping the banks curtail defaults though. Which is obviously huge.
I hold and like JPM. I bank with WFC and they’ve always treated me well. I’m well aware of their short comings, but I do think their mgt changes will help considerably. Hell they’ve hired JPM mgt. Scharf has spent the last 20 years at Visa and JPM himself.
I still have accounts with Wells Fargo. For the moment. They are still open because my wife likes their online banking and t was better than the alternatives. I’ve been living abroad for 4 years. Everyone’s online banking is more or less the same now, they are getting the axe at my earliest convience. I never opened an account with them, I was with Wachovia - which was a great bank. They got bought by WFC and it’s been a horror story ever since. They cut my commercial credit line to almost exactly what was on it, mid-job, in December, two weeks before Christmas and my anniversary. I was in the middle of an Interstate rest area project. The SOB’s can rot. I can’t wait for them to fail.
Wells Fargo financed our house a few years ago. And I remember when they bought out the bank I used when I first moved to Arizona in 1989. That’s been my only experience with them and it’s been ok.
I only asked about them because WFC looked like such an exceptionally bad stock and I was really interested in hearing a bullish case for the thing. Like I said, I don’t like financials. Only energy stocks are less appealing to me right now.
I bought 20 shares of WFC yesterday. It was trading in the low $50s just a few months ago. I bought at about $22.50. I am not convinced that corona has wiped out over half the value of the company. Not a huge fan of WFC as a company, but if they can make me money I’ll buy it.
I am more excited about T hbomax. Dis plus was successful (even it’s crap for me), hbomax might likely be the same .
Another stock i like is irt if dividends dont go below 5 pct, collection rate was pretty much the same as last year.
Well I’m using this big ass day to GTFO of some positions I haphazardly bought into last week and got beaten up for. I think this is a tporary bump based on powell’s offhand remark that he can do whatever he wants when ever he wants to help the market! I sold CCL at a nice profit after getting pummeled last week. Also sold VDE, which had been this high off and on for a few weeks… Gonna buy back in when it fluctuates back down to my previous and preferred but price.
I have little faith in a bull market when more economic reports come out… But I’m hoping I’m wrong.
Im rooting hard for BA. I know 2 people that just got laid off and a handful of others scared they will be on the chopping block too. They’ll have to move, or basically switch careers. With the way things are looking, I think I’ll be able to get in at $100 or below later this year.
I’m taking this second chance and cashing out everything that I didn’t buy with multi-year horizons in mind. I’m playing with peanuts in my grand financial scheme, but losing almost a grand last week made it get real, real quick for me haha.
I hear you, man. I was down $2k last week, but today I’m up 25.8%. I’ll probably sell off next week, depending on where things are and wait for the news of new COVID cases since people are frolicking around again.
If we get on the good news train, similar to how this week has started (vaccine, additional stimulus, successful reopening stories), we’re in for a run up to and beyond all time highs across all index’s.
Banks will explode. They are lagging considerably. A breakout is trying to happen with banks right now.
Who knows how this will play out, but some serious cash may very well be made.