Credit Suisse Rises Today (16 Mar). Buy "Bank Stocks" Yesterday ?

US Market remained skittish yesterday, despite Silicon Valley Bank’s (SVB) bank-run has ebbed.

Monies withdrawal from SVB eventually found its way into the Top 10 US Banks. eg. $JPMorgan Chase(JPM)$ , $Bank of America(BAC)$ , $Citigroup(C)$

There is a “silver lining” in this saga as banks that adheres to the Dodd-Frank Act further solidifies its status as being able to weather any unforeseen circumstances.

When the dust eventually settles they will only grow to become even stronger in their books with the influx of funds from SVB.

Months down the road, SVB may ceased to be a household name in the US banking landscape.

This is because FDIC has kickstarted the process of locating buyers to takeover $SVB Financial Group(SIVB)$ assets ideally.

Credit Suisse past 5 days performances

While the SVB story comes to a slow-halt, $Credit Suisse Group AG(CS)$ was the breakout “star” as the other bank’s story.

When story broke that Credit Suisse’s backer (Saudi National Bank) decided not to increase their current 9.8% stake in the bank; due to regulatory constraints - it made the industry very concerned.

I guessed the psychological effect took its toll and its stock price plunged 25% at one point.

I took the chance and added Credit Suisse to my portfolio; despite all the negative press. Why ?

Despite all the bad press on the bank’s two “bad and ill-timed” investments; I believed they have paid dearly for the mistakes in terms of customers exodus, reputation tarnished etc...

At the same time, I also believed that new CEO - Ulrich Körner (ex-CEO of Credit Suisse’s Asset Management) has put up a solid-plan that will lead the bank out of this dark period of the bank’s history within 2 to 3 years.

With the announcement on 27 Oct 2022 to revive “CS First Boston” - as Independent Capital Markets and Advisory bank; it is a step in the right direction.

There was even talk of going public with CS First Boston subsequently; that’s a plan too.

With the Swiss central bank throwing a lifeline to help the bank tide over the immediate hurdles; it should bring a calm to the bank in the immediate term.

Things should work itself out in the long run.

The only “bummer” was that I did not manage to enter at the “lowest” entry price. LOL.

On a brighter note, I did live through Mr Buffet’s mantra of “be greedy when others are fearful”… Keeping my fingers crossed that there is an ounce of truth from the Oracle of Omaha. LOL..

# 💰 Stocks to watch today?(29 Mar)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment29

  • Top
  • Latest
  • JC888
    ·2023-03-16
    Hi,
    Thanks for reading my post.
    Please give a "LIKe" okie.  Your rating is very important to me.  Tks Tks.
    Reply
    Report
    Fold Replies
    • JC888Replying toAgxm
      No, not in the near 1 to 2 years.  Thereafter will depends on its performance & whether it still makes foolish investment mistakes.
      A high 1 digit is good enough for me.
      2023-03-16
      Reply
      Report
    • Agxm
      U think credit sussie will go back to 2 digit?
      2023-03-16
      Reply
      Report
  • [得意][得意]
    Reply
    Report
  • 薇红
    ·2023-03-17
    [微笑]
    Reply
    Report
  • Taylee
    ·2023-03-16
    👍
    Reply
    Report
  • Gobin21106
    ·2023-03-16
    Ok
    Reply
    Report
  • Gobin21106
    ·2023-03-16
    Nice
    Reply
    Report
  • IcyAlchemist
    ·2023-03-16
    Ok
    Reply
    Report
  • AlanTiger
    ·2023-03-16
    Icic
    Reply
    Report
  • pohyc
    ·2023-03-16
    o
    Reply
    Report
  • AllanLaw7878
    ·2023-03-16
    K
    Reply
    Report
  • CuriousPhD
    ·2023-03-16
    Nice
    Reply
    Report
  • JustinOh
    ·2023-03-16
    Ok
    Reply
    Report
  • JustinOh
    ·2023-03-16
    Ok
    Reply
    Report
  • Enereskob
    ·2023-03-16
    Ok
    Reply
    Report
  • Kelvinpek
    ·2023-03-16
    Ok
    Reply
    Report
  • skylander
    ·2023-03-16
    a
    Reply
    Report
  • LongShort333
    ·2023-03-16
    a
    Reply
    Report
  • Kelvinpek
    ·2023-03-16
    Ok
    Reply
    Report
  • Smallbee
    ·2023-03-16
    B
    Reply
    Report
  • Yingss
    ·2023-03-16
    Like
    Reply
    Report