Monday, July 13, 2009

Meredith Whitney upgrades Goldman Sachs to "Buy"!

This is important news. Meredith Whitney is one of the few banking analysts I trust (really the only specialized banking analyst I trust). I agree strongly with her negative outlook on financials (specifically credit card firms), Citi, Bank of America, and the economy in general. She is making this bullish call because of - rather than in spite of - her negative outlook on the economy.

I've watched Goldman for a long time knowing that eventually I would want to be purchasing shares giving their outsized influence on government. I've been waiting for the prudent time to invest. I am still very bearish on the economy as a whole and on banks, but if Meredith is suggesting now is the time to take a stake in Goldman then I will strongly consider it. In all likelihood I will be purchasing a significant personal stake in Goldman Sachs this morning before earnings are released, while still maintaining my numerous short positions on home builders and regional banks.

Notes on Meridith's call are here.

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