Two Ways: Goldman Sachs Hungry for More Risk
Strengthen your portfolio in good times and bad.
Goldman Sachs' VaR, or value at risk, a measure of the maximum possible losses the company will face on 95% of its trading days, rose 52%, to $240 million. Morgan Stanley showed just a 12% increase in VaR, to $115 million.
The difference, some say, is that Morgan suffered a near-death experience and has been slow to ramp up its risk-taking. But on the other hand, some believe Goldman is exposing itself to more pain if the economy were to deteriorate further. CEO Lloyd Blankfein even suggested yesterday that Goldman may be positioning itself for difficult times, and questioned whether a true economic recovery really had begun.
For more on the economy, see Professor Kevin Depew's Five Things: Credit Crisis Abating... Debt Crisis Remains.
From the Bull Pen: Bulls can look elsewhere. And what sounds do they make? Moo! Have a look at the daily chart for Market Vectors Agribusiness ETF (MOO). See the chart consolidating above $36. A sell stop can be set below that level.
From the Bear Cave: If your preference is to remain short, for a technical play, look to Gilead Science (GILD). A buy stop can be set real tight above $45 on downside attempts.
That was the hump! Have a good night!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter