The 2010 Investment U Conference is underway! And even if you couldn't make it, now you can "bring home" more than 30 breakthrough presentations from the conference... Order the Deluxe MP3/Video Library for $99 to listen and view on your computer, or the Premier CD plus MP3/Video Library for $149 to listen to and view anywhere.
Watch Out for Bank Stress Tests
by The Investment U Research Team
We’ve been talking about the potential for a second market drop, bringing to light the specter of the “double bottom,” and the possibility the current market increase is nothing more than a bear market rally.
But even with some of the negative earnings, housing starts and manufacturing figures we’ve seen, the major indices have gained over the past few session in choppy trading.
It doesn’t appear like there’s anything on the horizon that could destabilize the markets enough to send them lower… or is there.
The only thing that we can see that has the balance shifting power to send the broader markets sharply lower at this point is a government announcement or action…
Hmmm… Like the delayed announcement of the bank “stress test?”
If these tests point to a weaker banking system with United States being required to invest (read: bail out) banks that they’ve already sunk billions into, it could be politically unpopular and hit the markets hard.
If that happens, we could see a pullback of 30% from current market highs.
We’ve already known that the banks receiving funds will not be allowed to fail. What we don’t know is the extent of the credit damage, and just how much it’ll take to make these companies solvent.
The delay from results to announcement could give the administration time to use them best to “cheer up” the markets. The news could be great, and the administration could be concerned no one will believe them… It could be the reason why U.S. regulators have detailed the procedures behind them.
The interesting thing for investors is the potential for the results of these tests to send the market sharply up or down.
On the other hand, if the news was good, shouldn’t we have heard already? Isn’t good news something you want to rush to the press? The delay could be a clever explanation as to why the banks didn’t do well.
And either way, it could be an incredible buying opportunity. It’s why we’ll be paying close attention to their release in May.
|
The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
One Response to “Watch Out for Bank Stress Tests”
Comments
**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.Check out our selection of daily Investment Research:
 |
 |
Investment U RSS Feed
April 18th, 2009 at 11:06 pm
I’m sorry, but the stress tests will be positive. No question about it. Why? Because they can make them that way and there’s nothing anyone can do about it. So just enjoy the ride and the fluff and make as much money as you can.
Reply