According to CNBC.com, Tim Geithner is expected to hold another press conference this week to provide further details on how the Treasury plans to solve the issue of toxic debt at the banks. Of course, my expectations are extremely low, given the dismal performance at his first press conference on February 10, 2009.
Whatever the outcome from this press conference, I plan to sell the three financial stocks, Bank of America, J.P. Morgan and Wells Fargo, which I own in my Bottom Fishing Portfolio. This weekend my spouse reminded me that although I have called financial stocks toxicin November, 2008, I have not acted on this perspective because the financial stocks are still in our account. Thus, no matter what direction the financial stocks move, I will sell them in the next couple weeks and reinvest the funds into stocks like Monsanto, Amazon or Energy Conversion Devices, which are all above their November 21, 2008 lows.
Hopefully, Mr Geithner's performance and message will be much better than in Act I, for his sake, the economy's sake and the stock market's sake.
Disclosure: At the time of publication, I own all the mentioned stocks, except Energy Conversion Devices, in our personal trading account.
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1 week ago
1 comment:
I hope his statements inspire more confidence but I really doubt they will do anything of that sort. I think the way the markets tanked today would've ruined whatever little confidence he had in his plan.
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