Everyone Panic 2.0
Earlier this year I wrote a piece Charles Schwab and its situation in the banking crisis we saw earlier this year.
Last night, if you missed it, S&P downgraded more banks and that of course made the rounds on Twitter.
While I am a big fan of Uncle Elon, his work and the new revenue share on Twitter it, like many things, can get used nefariously.
Yesterday there was an account fearmongering on why “Schwab could be the next Lehman”.
Without even going into why; the two are not even close.
But that is not really my concern nor are these downgrades.
Why? Because none of them have bearing on what I do in the markets aside from, hopefully again, proving entries for short-term trades.
That quote above is how I feel about the banking sector and in general applies to my framework to positions that I take on for the long term ( 3-36 months).
It’s too tough to understand and they’re not really great businesses to own (at least in a securities portfolio).
So, I don’t really waste time reading too much into a situation like this because it’s not in my wheelhouse.
However, volatility and fear make for great trades so this rising up again is an issue to pay attention to for me once again.
We’ll see if we get opportunities in the coming months on Schwab again as it’s already well off the gap up off of recent earnings.
I’ll cover some of this briefly on Episode II of The Long/Short show later this week.
Thanks for reading,
This article is presented for informational purposes only, is an opinion, is not intended to recommend any investment, and is not an offer to sell or the solicitation of an offer to purchase an interest in any current or future investments. Any such solicitation of an offer to purchase interest will be made by a definitive private placement memorandum or other offering documents.