Financial stocks are weaker today as many investors fear the bulls eye is directly on stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS) and others. Why you may ask? President Obama has just passed his most important agenda. The healthcare reform bill will define him in a historical sense and he knows it. This bill was his number one priority for his presidency and his main campaign promise. It is a done deal. Signed, sealed and delivered to his desk to sign in the next few days.
So how does this cause problems for financial firms? Namely the attention of the nation, congress and the president will now fully be on Wall Street. The bulls eye is now on the top financial firms and banks and the president, high off success on healthcare is coming to town! Bernanke recently said, and I will paraphrase, we as a country can never come so close to collapse again, because of a few of the largest banks. This will now be a priority for President Obama.
Bank stocks are under pressure today as Wall Street now realizes what is most likely on the horizon. As of now, the markets are flat to slightly higher regardless of the banks being weak. Keep a close eye on stocks like Goldman Sachs, Morgan Stanley and the others. Tough talk could cause them to continue to fall lower.
Chief Market Strategist
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