FYI: A perfect storm continues tobatter the global financial sector, leading to historically
low valuations; in the US, revenue growth is threatened by
a flattening of the yield curve driven by renewed Fed
dovishness, a deteriorating capital markets backdrop and
intensifying regulatory and political assault; sentiment is
terrible and earnings revisions are negative; with oil prices
and fee-based revenues stabilizing, the potential for yield
curves to steepen, global competitors on the ropes and
management focused on cost control and shareholder
returns, we see earnings estimates troughing, providing an
attractive entry point. Consider financial exposure, with a
focus on leading US institutions with above-average
dividend yields and share buybacks.
Regards,
Ted
http://www.morganstanleyfa.com/public/projectfiles/gicweekly.pdf
