Einhorn has taken short positions in Tesla (TSLA) and Amazon (AMZN), but now he’s feeling frustrated about the strong performance of these stocks.
Einhorn is skeptical about the Amazon and Whole Foods Market deal, believing that Amazon’s interest in it will not be a great business move.
Billionaire hedge fund manager David Einhorn is well known for his investment strategy, having advised long and short bets during different market scenarios.
Currently, in the industry, there has been sizable growth within recent years. Over the past five years, ETF AUM have grown in the US alone from $1.2 trillion to almost $3 trillion and the growth appears to be accelerating.
With so many positive tailwinds for the financial sector, how can investors use ETFs to target this growth?
In addition to the promising signs of the financial sector passing the rigor of this stress test, talk of deregulation makes the financial sector even more attractive.
Despite and a rocky 3-month period, starting in late February/early March, the financial sector has really taken a positive outlook over the past ~month and some signs point to a continuation of this recent success.
Last week, the US Dollar Index fell to the lowest levels in ten months. It opened this week on a stable note by gaining on Monday.
Vertex Pharmaceuticals rose on Wednesday. Better-than-expected results in trials for its drug to treat cystic fibrosis boosted the stock price on July 19.
The S&P 500 started this week on a stable note by trading at all-time high price levels. The market lost momentum in the first two trading days this week.
After gaining for two consecutive trading weeks amid improved market sentiment, the United Kingdom’s FTSE 100 Index opened this week on a positive note.
On July 20, the Shanghai Composite Index rose 0.43% and ended the day at 3,244.86. The SPDR S&P China ETF (GXC) rose 1.4% to $95.44 on July 19.
After gaining for two trading weeks amid improved market sentiment, the United Kingdom’s FTSE 100 Index opened this week on a positive note.
Japan’s Nikkei Index started this week on a weaker note by falling below 20,000 on Tuesday. On July 19, Nikkei opened the day lower but regained strength.
Commercial banks’ 3Q17 numbers are expected to be weaker on lower trading activity, less room for margin expansion, and fewer growth areas in the economy.
Wells Fargo has performed below its major banking (XLF) peers, mainly due to lower credit offtake, higher spending, and lower wealth management growth.
In July so far, 12 of the 30 analysts covering Wells Fargo (WFC) have given the stock “buy” or “strong buy” ratings, compared with 13 of 31 analysts in June.
In 2Q17, Wells Fargo saw its nonaccrual loans decline to $9.06 billion, or to 0.95% of total loans, compared with $9.76 billion, or 1.02% of total loans on March 31.
The Fed’s rising rates have helped commercial banks improve margins on earning assets, though these have been partially offset by the rising cost of liabilities.
Wells Fargo returned $3.4 billion to shareholders in 2Q17, at a net payout ratio of 63%, based on its net income of $5.8 billion.