Jim Cramer: The Banks Are Alive and Well
"You can see the thesis building and it is an ugly one: there is very little loan growth in this country because of a combination of lower demand and an unwillingness to lend. That tepid depiction's occurring despite all the great things about the economy that we thought were happening or at least were supposed to be occurring given the federal government stimulus from lower taxes," observes TheStreet's Jim Cramer.
Cramer adds, "That's the downbeat consensus that investors have cobbled together after all of the big banks reported and no one is bothering to dispute it or why it happened. That's why the bank stocks have all stalled. That's why no one wants to pay up for them."
But Cramer says, "I just can't reach that very dismal conclusion, either for the banks or the country."
3 Sectors I'm Trading Right Now as a Market Rotation Takes Hold
Real Money columnist James DePorre says, "The rotational action is the main theme today. We have weakness in semiconductors after a good bounce Tuesday, in large part due to a poor reaction to quarterly results from Lam Research (LRCX) . Financials are still struggling although Morgan Stanley (MS) is helping the group.
DePorre is focused on three sectors today, including precious metals and oil, MLPs, and biotechs.
REITs Stumble But Still Have a Place in My Portfolio
"Yield-sensitive sectors, such as REITs, often stumble during periods of rising interest rates, economic growth and higher expected inflation," writes Real Money columnist Jonathan Heller. "As interest rates rise, investors can take advantage of higher rates in safer securities such as Treasuries, rendering REITs less attractive. In addition, REIT dividends are generally taxed at a higher rate than equity dividends."
But Heller notes that "one of the few REIT sectors that is actually in positive territory for the year is timber land."