Check Your Emotions

Bank of America is now lower than where it was when John Paulson filed his 13-F on the stock, even though the S&P 500 is up more than 10% since then. I recall the feeding frenzy that ensued when he announced his position, even though he likely bought his position at much lower prices.

At the time he also filed large positions in the gold miners. Those position received little attention but have been stellar performers. Another reminder that it rarely pays to get caught up in the emotions of the day.

1 comment:

Anonymous said...

What if John Paulson sold all his shares by the time that news was released.

I mean even in the 2Q earnings, Lewis said that going forward, it's going to get worse. Doesn't surprise me that BAC had bad earnings, they even told us what's up to begin with.