AMERICAN DREAM WALL STREET STYLE

 
 t. man hatter

The push is on.

As we enter into the second half the Wall Street mavens have their recommendation out. We'll list a few here and you can read them for yourselves.

Let's be clear. We are not in any way saying some of these won't turn out well. What we are suggesting is these folks would almost leverage their first and second born to keep this circus going. You do that by increasing your market share, another term for bringing fresh money into the market.

The big U.S. banks have been hit  hard by regulations since the market blew up in 2008. Fixed income, currency, and commodity trading revenues took the fall, dropping on average around 15 percent. Uncertain litigation risks hover just around the corner.

Take a lead from the huge pharmaceutical firms. Lower what defines a normal blood pressure or LDL and you'll sell more pills. Back it up with paid-to-do research. With Wall Street it's just the opposite. Make things look irresistible and certain. The first caters to fear, the second greed. But one guesses a so-called cynic would say they both cater to both.

Loan competition from shadow lending isn't helping, recently attracting more attention from central bankers worldwide. Though loan growth has picked up, some are saying banks are being quite aggressive and that might mean suspect quality here.

The ever ubiquitous Goldman Sachs (As an economic fun parlor game try to count the number of central bankers at the world's major central banks with Goldman connections!) gets a fair share of its revenue from trading and investment banking.

One of the big boys recently announced further layoffs. Along those lines, the Associated Press, the big wire service news provider, disclosed its wire reports, once the solid province of homo sapiens, in future would be done by robots.

Restructuring is afoot here, an abstract term, like those in the accounting world, that means whatever they want it to mean. If you catch the drift, there's the odious smell of pessimism wafting about, a staple of MSM. According to some reports, these big boys are trading around 10 times forward earnings, a huge discount to their big regional brethren and non-performing assets have been halved since the pony escaped the barn.

Given the more than likely prospect of some sort of pullback here, a decent contrarian might suggest why buy their recommendations when the mother loads looks cheaper. 

If you believe these TBTF institutions--of course, with more than a little help from their friends--won't claw their way back to profitability and raise their payouts along the way, you don't subscribe to the American Dream Wall Street style.


http://247wallst.com/investing/2014/07/03/j-p-morgans-top-stock-picks-for-the-second-half-of-2014/lofrom their friends--

http://247wallst.com/investing/2014/07/07/top-u-s-picks-to-buy-from-rbcs-global-ideas-list/

http://247wallst.com/investing/2014/07/01/merrill-lynchs-top-eight-catalyst-stocks-to-buy-for-the-third-quarter/