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Regional banks are undervalued
I'm stating the complete obvious but some of you still aren't listening
Here’s what I’d like to share this week:
It’s clear to me that because regional banks have begun failing and the Fed does not seem to care and raises rates anyway, regional banks are cheap and they are only going to get cheaper.
Did I mention that the Fed doesn’t mind banks failing because they’re too small not to fail, so they raise rates anyway?
I’ve not shared much about how I view and practice behavioural finance techniques, here’s a quick primer. Spoiler: it’s not what you think it might be.
James Montier’s The Little Book of Behavioural Investing was one of the reasons why I focus more on behavioural finance and share more of the things I actually do on a daily basis. Montier’s dry wit and access to psychological research makes for a great read. He opines: ‘We should do our investment research when we are in a cold, rational state, and when nothing much is happening in the markets. And then pre-commit to following our own analysis and prepared action steps.’
Warren Buffett says Apple is Berkshire’s best portfolio business and who can blame him? It’s the best publicly listed business in the world and a member of the Wealth Accumulated portfolio.
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D J Thomas
PS the first seedlings of the year have been planted out this past week and they’re not dead yet so I must be doing something right