New York Times has a report where Merrill Lynch chief investment strategist Richard Bernstein warns about the risk in “Bottom Fishing” of global financial stocks.
“We continue to suggest underweighting financial stocks because of the myriad of risks facing the sector. This applies to financials in a global context, not simply to U.S. financials,” Bernstein wrote in “The RIC Report.”
Merrill’s U.S. as well as global quantitative strategy groups view financials as significant “value traps” — stocks that appear to be undervalued, but have no visible catalysts to keep them from becoming even more undervalued.
Sigh plus wtf.
Didn’t we just give you money?
Investment company Temasek Holdings, which has taken a US$4.4 billion stake in troubled Merrill Lynch, said Wednesday it sees strong growth potential in the firm.
Couldn’t tell us earlier?
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