Don't be long MBL.AX or BNB.AX, seriously, they've been good, great even, just not right now.
Have a look at the way all the Investment Banks have been getting smashed offshore. Night after night we read about it. This is just last night's action;
- Washington Mutual down more than 16% after management warned mortgage lending would decline to an 8-year low next year. Adding to woes, a further admission that as much as $1.3bln would need to set aside this quarter to cover bad loans.
- Morgan Stanley down around 5%
- Lehmans off 4.4%
- Goldmans down 3%
- Merrills both down 3%
- and JP Morgan 2.4% lower
- Fannie Mae down 10%
- and Freddie Mac more than 7% lower
- Capital One down 12%
If you are adding to your portfolio, don't add banks right now, there's more pain to come.
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