With the new administration proposing to water down Dodd-Frank, banking stocks have zoomed an impressive 10% over the past two days. Wells Fargo has in fact recovered from the account opening scandals to zoom 13% and is up 7% over the last three months.
What may be good news for the investors may not necessarily be good for the consumers. With significantly watered-down banking and consumer regulations, the average consumer may find himself at the receiving end. With stagnant real wage growth and zooming student loans (above $1 trillion mark), future demand may get significantly affected. Dollar General and Dollar Tree could see substantially increased footfalls. Already Dollar General is up 6.7% over the past two days.
However there may be good news for companies selling luxury goods and services such as Tiffany & Co. (up 6.1%). Cruise liners may be another area to watch out for.
While many Investment Advisors advise a wait and watch policy, the party seems to have already begun for the banks with their WMDs.
What may be good news for the investors may not necessarily be good for the consumers. With significantly watered-down banking and consumer regulations, the average consumer may find himself at the receiving end. With stagnant real wage growth and zooming student loans (above $1 trillion mark), future demand may get significantly affected. Dollar General and Dollar Tree could see substantially increased footfalls. Already Dollar General is up 6.7% over the past two days.
However there may be good news for companies selling luxury goods and services such as Tiffany & Co. (up 6.1%). Cruise liners may be another area to watch out for.
While many Investment Advisors advise a wait and watch policy, the party seems to have already begun for the banks with their WMDs.
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