Predictions – Ben Stein, Charles Payne, Ken Fisher, Pat Dorsey

By on August 19, 2007

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IMHO, the Financials are in the first couple of innings of this decline. To talk about looking to buy now is much too premature. In fact, I can’t believe a man as smart as Buffett is doing serious buying of the banks here. Ben Stein talks about this perhaps being the buying opportunity of a lifetime and that Merrill Lynch is being given away. Please! He really sounds like a greenhorn on this. This is going to get much, much uglier. I would imagine the Financial Select Sector Spider (XLF) could drop by another 50% from here after many of these brokers and banks earnings simply evaporate. Many were similarly making the argument a couple of years ago the homebuilders were cheap due to their low PEs. Buying stocks in cyclical industries when earnings are peaking or have recently peaked is a very bad idea.

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