Looks like many of my potential employers (financial firms)are in trouble. I must say my employment outlook does not look good at the moment. The financials once again take a hit today. As I posted over the weekend; uncertainty clouds over the financials. Morgan Stanley wrote down another couple bil. bucks. No biggie. It's only ~5-7% of MS market cap as Morgan already lost ~40% of its market cap YTD. MS is trading flat throughout the day. Up 0.49% as of now.
This is a good time to bring up the topic of Level 3 assets.
Basically, these are difficult to value assets. These are probably private investments in other private companies, investment in exotic investment vehicles, investment in illiquid instruments. ..etc. So the banks have to "guesstimate" the value of these assets. In today's environment, the value of these assets the banks have to come out with can be ugly. If I didn't sound bearish enough, I will say it again, I'm staying away from the financials.
End Of the Day Update:
A fresh round of buying emerged this afternoon. The XLF finished positive for the day. But I'm still not convinced that the financials are bargain at this level.
1 comment:
don't worry, i'm throwing my hat into the race for the Citi CEO spot. i will save the financial world.
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