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Features - Editor, 10 March 2008 - 3 Comments

Hold or Short, You Cannot Lose in the Investment Services Industry

Editor

You are not alone. It is normal to be in awe of giants in the Investment Services industry. These corporations pay enormous sums to celebrity alumni of top Business Management schools. Even governments listen to them. They know it all, from the state of the economy downwards. Then there is the sub-prime story. Some of their executives have been naughty. They have left with golden handshakes. The stock market holds its collective breath in the meantime. What further bad news can we expect about undisclosed losses tomorrow?

Shorting seems to be a favorite for Financial Sector stocks. Just wager a small bet that new instances of rank bad management will come to light. Pick up discounted stocks on or near the due date and deliver to pocket a small fortune. Your conscience may hurt at the thought of making cash from distress. Your broker will not complain. Besides, you can always donate some of the killings.

It is also a bad eggs or rotten fruit story. The Investment Services industry has a wealth of executive talent. Not all of them are negligent. They have reserves to meet obligations and to rebuild their assets and revenue streams. Inherent stock values are probably much better than what the stock market thinks of them today. They will eventually welcome such stocks back in portfolios like indulgent parents. No economy can flourish without a vibrant and professional Financial Sector. Therefore, holding is as profitable as shorting, though not in the same time frame.

You can troll any industry to find top stock picks. It is the same with Financial Services. The trick is to analyze business performance rationally, rather than to go by image and branding emotionally. Do join our forum to share your hold and short experiences with stocks. Start today.

Features

Comments

1. On Tuesday 11 March 2008 at 16:16, by Stock Seeker

Those who have had the sense to short this market and the financial sector in particular are making out like bandits. I looked at buying a small position in BSC a couple of months ago when it dropped to $100.00 a share only to see it hit a 52 week low in the $70's. Even with a bump, this sector scares me to death.

2. On Tuesday 11 March 2008 at 16:35, by Editor

3. On Tuesday 11 March 2008 at 17:04, by asiaconsult

Sorry Stock Seeker, but time is of the essence in shorting. Try and hold on to BSC stocks if you can. The market is pessimistic about the inherent value. You are likely to beat the market with such a highly resourced company, provided that you wait for a new Washington administration.

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