Rumors of Goldman layoffs - should we short the banks and brokers?
Answers
3943 points
MNSL answered one year ago …
I don’t think we should short financials stock now. It is better to accumulate some stocks like Bank Of America, Citi Group etc whenever there is an opportunity. We must look at how long term experienced and well matures investors play market today. They don’t worry about recession, corrections or any thing. It is great opportunity for them. Now Value investors have seen potential for some of these shares.Honestly I am not good at selecting brokers. If you can do research and if you know very well then you can apply your investment strategy.
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2183 points
ChaosNantuko answered one year ago …
My understanding is that layoffs generally drive the stock price up, because its generally considered an act that cuts unnecessary expenses, and makes the whole business more efficient. Consequently, i think shorting based on these rumors is a losing proposition.
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114 points
Rumpole answered one year ago …
I agree with chaos. In addition, with upcoming FED rate cuts, there'll be catalysts for the stocks to go up in the near term.
However, I have to admit that I've been dubious about GS and whether its been entirely forthright about the value of its holdings. Actually, I've also been wondering whether at the end of February, there might be a nasty surprise when GS along with the other investment banks have to value their level 3 holdings. Perhaps another tickerhound has insights??
Cheers.
825 points
Dragonsbane answered one year ago …
I would short the brokers here and I would not buy Citigroup or Bank of America. That is not to say that I don't think they will go up here. But I do think that they will eventually go much lower than they are now.
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