What’s interesting is the index holds a large number of the smaller banks which is a good sign given what’s happen the last couple weeks in the financial sector. If this 5 day rally continues today that would put the Russell up over 3% for the week.
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Interesting. I looked at the chart and see quite a bit of volatility over the last year. Understandable. The regulators, treasury and fdic made it clear they will step in to save any troubled banks. That decisive move has to make investors feel much better about buying bank stocks. I’m down to 2 stocks in my portfolio, $tsla and wmt. Should have sold my entire position in both last year. But my addiction to the adrenaline wouldn’t let me. Tesla is a fun stock and I think they have room for a run up, so I will keep my toe in the water there. I will sell 90% of both stocks. I’m going to deploy that cash to grow my real estate loan portfolio. With rates going up I think I can get 12% note rates again ( I have been averaging 8.50%). 12% plus 10 points in fees and 6 month max terms will get me about 22% rate of return. I think I can turn the capital over twice in one year. Keep my loan to value under 60% so prices would have to drop 40% before I get worried. I would also like to buy a few defaulted trust deed notes if they become available again. Cheers!