Citicorp and chase, are obvious favourites here given that their valuations relative to earnings growth and return on equity are the cheapest while they do not have much exposure to the US credit cycle. The price action in Wall Street investment banks such as Goldman Sach and Morgan Stanley also suggests that the financial markets have extrapolated the bullish impact of the Fed rate cuts on Wall Street. The IPO markets reopens. The indices climb back. Merger deals happen.
Leveraged lending comes back in fashion.
All good news for equities. The market is cheap. The Fed is on our side. The profit outlook will clear up eventually. A new bull market was born on Wednesday.