Posted by
Andrews on Wednesday, February 18, 2009 10:51:04 AM
I hate to say it, but I joined the crowd and ditched my financial stocks yesterday. It has nothing to do with the market, I bought most of them post-collapse, so they were cheap enough, and I believe that left to their own devices, strong financial companies will restructure, revise their plans, clear out bad loans, and return to a sound footing. However, Obama scared me. With all the talk of CEO salary caps, government-business "partnerships" and new regulation, I just don't think any financial company will have the breathing room they need. And that raises the specter of even more government involvement, which is never good news for a business, just ask Amtrak, any hospital, or your local utility.
The irony is that the Democrats are claiming without this bailout investors won't have the confidence to invest in financial stocks. I can tell them quite the opposite, thanks to all their intervention they have driven away at least one investor.
POSTSCRIPT
As a former law school drop out, I have advised myself I need to add this: None of this is offered as investment advice. If you saw my portfolio you would know you probably shouldn't listen to me. So please don't go out and throw away your life savings based on my statements, get some additional bad advice first.