Financials

Greetings KFG

The market is booming on this gorgeous Tuesday! National Assoc of Realitors came out today with better than expected figures on home sales which got our sector moving. Combined with a surprise upgrade (Neutral to Buy) by Goldman Sachs -- MER is up over 3%. I continue to be ultra-bullish on this holding and see as a good competitor on all playing fields: IBD, Asset Mgmt, Trading. It is not the best in either of them per se, but its success everywhere is helpful and will keep it trading up in the current market.

I feel as we should sell our holding in Citigroup and take a position in something more aggressive. Citi has done extreemely well for us the past 4 years, but its current cost-cutting program (read: last post), along with its role as a big 3 commercial bank as opposed to an inv bank (lower margin, int rate sensitivity in consumer mkt), I feel we should get out of it. The outlook for the sector as a whole is not that great, and while we continue to look for opportunities, the money shouldnt sit in cash.