After Bank of America (BAC) and Citigroup (C) reported earnings today, their stocks and the market across the board sold off around 3%. What did BAC & C say about the new Financial Regulatory Bill, which received enough votes yesterday to Pass?
Exec’s for BAC & C commented that the new Fin Reg Bill will impact their consumer business very little or not at all, and one exec even said the new bill may be a good thing. I find this extremely encouraging, as I have been waiting for the bill to pass and learn what language makes up the bill for several weeks. Many of the items in the new Fin Reg Bill are not expected to be implemented from a couple years to a few years. I have listed BAC & C as a Buy for over a year, and this new bill does not change my opinion of BAC, C, BCS, MS, and UBS.
The credit card companies may see a decline in their revenue with this new bill, as interchange fee’s a card company charges retailers is going to be lowered and restricted. This bill will definitely hurt Mastercard, Visa, Amex & Discover.
A double-dip recession has been talked about today as one driver of the declining market, however, I do not see that happening. What is the definition of a double-dip recession any way? I do agree the market and economy need the Unemployment numbers to decline, if not, Mr. & Mrs. America will have limited funds to spend on non staple products, which could dramatically change the earnings forecasts for retailers up and through the holiday season.
Do not be surprised if the Dow Jones Industrial Average (DJIA) dips to 9,800 as it did a few weeks ago, in the coming weeks, however if/when it does, keep buying quality stocks. For my list of quality stocks, check with this website periodically for my Stock Picks of the Week!
It’s days like this in the stock market, you should be glad you have good health! I wish all my readers a great weekend!
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Jim has worked as a Portfolio Manager & Financial Advisor since 1996. In May 2005, Jim founded WHI Financial Services, LLC, WHIFinancial.com, a Registered Investment Advisory firm, with headquarters in Texas. His primary focus is on portfolio management, financial & retirement planning, and financial advisory & insurance services. Jim manages investment portfolios & advises individuals, small to mid-size companies, and non-profit organizations on a variety of financial and business issues.
Prior to founding WHI Financial Services, LLC, Jim worked as a portfolio manager & financial advisor for two international investment firms. From 2001 to 2005, Jim worked with Prudential Securities (merger with Wachovia Securities, now Wells Fargo Financial Advisors), and from 1996 to 2001, he was working with Merrill Lynch. While working with both Wachovia Securities and Merrill Lynch, Jim enjoyed dual responsibilities as a portfolio manager, financial advisor and leader of the Professional Development Program.
Jim's responsibilities as leader of the Professional Development Program included, recruiting, interviewing, training, and overseeing the daily operations of all financial advisors involved in the Professional Development Program. Jim was responsible for managing between 10-20 advisors, while still managing his own client investment accounts.
In addition to his experience in the financial services area, Jim has been involved in several start-up companies. Jim's Philanthropic work includes serving as President/Treasurer of a private foundation established to provide non-profit organizations financial assistance, and Chairman/President of the Believe In Your Dreams Foundation. In 2007, Jim established the Believe In Your Dreams Foundation, a 501(c)3 organization, to help individuals who are suffering from life-altering circumstances beyond their control.
Jim has taught investment, insurance, and credit repair classes through continuing education at universities in CA & TX since 1997. Jim attended the University of Minnesota where his focus was Management & Marketing.
Jim has recently written two books, one called "Your Financial Lifecycle" a book which describes several key investment topics everyone will face throughout their life, and a book titled, "The Truth about Your Credit Score", which defines how credit scores are calculated and how you can increase your credit score, including templates which you can use to send to creditors.
Jim's books can be purchased on Amazon.com, via Author search, or by emailing him directly at JimWigen@GetWealthyStayWealthy.com.
In the Fall of 2011, Jim will be starting his radio show called, The Jim Wigen Show, Teaching You to Get Wealthy & Stay Wealthy. You can hear his shows through streaming audio by visiting JimWigen.com.
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