Quote:
Originally Posted by Rain Man
I've been reading, though, that if Biden wins then Elizabeth Warren will be in some position of power, and she will go after the banks with fervor. So I've been staying away from American banks other than one regional bank that I've had for a while (ABCB).
I also sold off all my WFC and USB because I was highly displeased with the PPP loan processing allegations and WFC was a sucking chest wound in my portfolio anyway.
I've had some BMO for about about four years, and it has not been a star. I was getting the dividend but no notable appreciation until Covid, and now it's down about 20 percent. I'm keeping it just because I'll keep taking the dividend as long as it doesn't get cut. I also wonder if they might thrive across the border if Warren goes on the warpath against US banks (which frankly I would support - get rid of garbage companies like WFC and start bringing back smaller regional banks).
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I am not in any US banks- they have had too many scandals as you point out. I do wish I bought into Goldman Sachs though.
I have been watching cash flows. Where is the money flowing throughout the world? I look at it as rivers and I am buying fishing poles ( stocks ) to catch some of the money going by.
Banks just took a big hit over Covid- and many had these huge writeoffs to offset "future losses" --but where did that money go? No where, it stayed in the bank earning interest. It was all accounting smoke and mirrors. Yes, they took a hit on their stocks short term, all the while keeping huge amounts of money in their accounts. So will the banks really have these losses in the future? Doubtful. Those loans are probably insured or covered by assets. Banks always win.
So by having investments in most of the cash flows (banks) in the world- I will also be making money every time the cash changes hands.
As far as BMO- I have been in and out of it for years. It is like a savings account. All the Canadian banks seem to move as one. 5 banks control most of their entire countries cash flow. Every time a lumber jack up in the great white north gets paid- that money goes into one of those banks.
Compare bank stocks- they all dropped at the same time- almost the same % --- which to me, says it was manipulated. The losses were never losses and their actual cash flow and earnings for some banks have been amazing.