A diary of the thought process behind my investment decisions
Financials Are In A Funk
The financials seem to be weighing on the market as they are way down in an up market. Financials face a number of headwinds. There is continued dilution as banks raise equity to pay back TARP and because shares are being issued in lieu of cash bonuses at many firms. In addition, balance sheets remain impossible to decipher from where I sit. On top of that there are credit market worries because of the sovereign debt problems. I continue to steer clear of financial stocks other than Berkshire Hathaway.