Today's rout The selling since last week's Fed announcement makes sense, including today's rout. He sees the next level being 3,750 on the S&P. ETFs selling off is a good sign; the excess is being cleared out, though we haven't capitulated yet.
Financials have been sold off. BAC and JPM are trading at 1.7x tangible book. JPM hasn't seen such levels in 15 years, and BAC has returned to this level since Covid hit. Overall, bank valuations are now making sense.
Financials have been sold off. BAC and JPM are trading at 1.7x tangible book. JPM hasn't seen such levels in 15 years, and BAC has returned to this level since Covid hit. Overall, bank valuations are now making sense.
At $264, it trades at 23x 2023's earnings, which we haven't seen in 3-4 years. Their trajectory is fine and their valuation now is the most compelling in a long, long time.
Wasn't a great quarter, though a great stock reaction. Then, shares fell to $2,700 earlier this week, an 18-month low. A $10 billion share buyback doesn't move the needle on a company this big. Amazon can trade higher at current levels. Play long. Look for the bounce to the post-earnings level of $3,350.
Today's rally after days of selling Nothing has changed. The theme now is you sell rallies in contrast to pre-Thanksgiving when you bought sell-offs. Inflation is probably much higher than the official rate, so the Fed is 2-3 years behind. The Fed is no longer backstoppping this market.
Shares are jumping after hours after their report It fell far from its all-time high some months ago. But earnings were really good: beat EPS by 50% and guided higher for this fiscal year. At 20x revenue it is expensive, but all these stocks are. This upside move will continue.