Banks are drowning, bailout needed!

22 мар. 2020 г.

US is swirling in a mountain of debts and with QE4 , they are printing more money to help shore up the failing industries, tourism, hospitality, oil, banks, airlines, etc. The debts mountain are getting higher and higher, breaking its previous peak year after year. And this is definitely not good in the long run when the bubble breaks!

Here, we compare the XLF ETF . Click on the Holdings and you can see the top 10 holdings which shows the list of financial institutions.

I expect more room to go down towards the support zone at 14.98 to 17.31 where it probably might have a pullback. Thereafter, we have to assess the situation and see if price action supports and heads higher or continue to go down.

Here, we see the legendary Warren Buffett spending 2.2 billion to buy back Berkshire shares in 2019. See, even someone of his level does not time the market as the price of Berkshire continues to go lower (meaning his 2.2billion purchase would incur a paper loss). But important lesson is he is buying them much cheaper though he does not know when it is going to bottom.

So, Citigroup and other banks are still a sell for me , for now.