I anticipate "better than bad" results in the next few weeks from U.S.-taxpayer-supported Goldman Sachs (GS - commentary - Trade Now), JPMorgan Chase (JPM - commentary - Trade Now) and Wells Fargo (WFC - commentary - Trade Now) -- three of our better TARP recipients. These results could continue to power the iShares Dow Jones U.S. Broker Dealer ETF (IAI - commentary - Trade Now).
A Bank of America analyst upgraded Goldman today, on account of its trading revenue, despite the problem with its $400,000-per-year Russian computer programmer. The lack of competitors, due to the failures of Lehman Brothers and Bear Stearns, coupled with the huge wave of public capital-raising by U.S. and foreign financial institutions, should have powered Goldman's earnings in the second quarter.
Our taxpayer dollars have also lowered their cost of capital, and that should allow these firms to resume their huge salaries and bonuses. Nantucket and the Hamptons may be more crowded next summer.
P.S. Will you be there when Cramer makes his next move?
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At the time of publication, Dion had no positions in stocks mentioned.
Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.
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