Given that Slick Sally is down 10%, and the S&P and Moody's are downgrading debt (not to mention the fundamental snafus of late), it's time to monitor risk, not chase reward.
Lay down, sally, and rest you in my arms.
Dont you think you want someone to talk to?
Lay down, sally, no need to leave so soon.
Ive been trying all night long just to talk to you.
I see the S&P hanging tough up six handles. I get that reaction to news is more important than the news itself. And I understand that banks (BKX) are already down 5% from the end of June.
But let's take a step away from the flickering ticks and think about this for a moment.
In December, at Minyans in Manhattan-Critter's Choice Awards, keynote Steve Galbraith, the uber-savvy strategist from Maverick Capital , opined that a "big, broken private equity deal" could be the catalyst for some serious downside smackage.
I'm not sure if this is "it," but Sallie Mae (SLM) is a pretty big deal. Given that Slick Sally is down 10%, and the S&P and Moody's are downgrading debt and (not to mention the fundamental snafus of late), it's time to monitor risk, not chase reward.
I'm still of the opinion that we've yet to see the Debbie Downer today and this news adds weight to that freight. Not advice, just sharing and caring.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
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