No Saving Graces for the Banks

Cramer sees little but negative catalysts for bank stocks, so he's standing by his advice to avoid them.
Author:
Publish date:

A couple of weeks ago, I wrote off the bank stocks on our TV show. I said just avoid them. Yesterday the producer of the show called; he wanted me to review some of the predictions I had made. I looked at the banks and said, "I am standing by that prediction."

Thanks,

Bank One

(ONE) - Get Report

! You didn't let me down.

I am not using the weakness to buy these stocks. I need a catalyst to get long. Short rates have gone up. That's a negative catalyst. The yield curve is flattening. That's a negative catalyst. The credit-card business is getting too competitive. That's a negative catalyst. The mergers are over. That's a negative catalyst.

When I look at unfortunate groups, I can't come up with one more unfortunate than this one.

Take 'em off your screen.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.