“You fix housing, you fix Wells Fargo… and RBS”
We note Wells Fargo (the largest US mortgage originator) made a new all-time high on Friday. The implied value of Citizens should be rising along with it. Stay long RBS, and note post the upgrade from...
View ArticleClik here to view.
You fix housing (cont…)
While preferring housing derivative stocks over the homebuilders themselves, evidence from the latter continues to validate the theme we have identified since October 2011. New orders, the key...
View ArticleFor equity managers, an upside break means buy cyclicals, banks and insurance
Should the yield curve break out then we can read this as the treasury market saying buy cyclical, principally in the US. The move in rates higher is positive for cyclicals (CAT), especially those that...
View ArticleClik here to view.
You fix housing…
CoreLogic home price data released today shows home prices nationwide, including distressed sales, increased 12.1 percent on a year over year basis in April 2013 compared to April 2012. This change...
View ArticleClik here to view.
The impact of higher rates:
An interesting comment from Wells Fargo’s CFO this morning. Mortgage originations are down 30% this quarter. WFC lead the origination market share with 23%. In addition, housing starts are losing...
View Article
