Tags: Bove | Nuts | cheap | bank | stocks

Bove: Bank Stocks So Cheap That 'We’ve Gone Nuts'

Wednesday, 02 Nov 2011 12:03 PM

By Larry Kudlow

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Investors dumping U.S. bank stocks are overreacting to all the European debt crisis speculation, Rochdale Securities’ Dick Bove said last night on the Kudlow Report.

“I think we’ve gone nuts,” he said. “I think these [U.S. bank] stocks are so cheap, that people should be buying them as aggressively as they could.”

The financials led the S&P lower Tuesday after investors fled the market on fears that the European debt deal could fall apart. After conflicting reports on whether Greece plans to hold a referendum on the debt agreement reached last week, the government jumped in to say the vote is on.

But what's happening in Europe should not affect U.S. banks, Bove said, because most have virtually no exposure to the EU. Plus, most banks beat their earnings estimates for the third quarter.

As for the “five big American banks” that do have exposure to Europe, their risk is “not very great at all.”

That’s because Bove believes the EU will not let its banks fail.

“The ECB will do, if you want, a QE2,” he said. “It’s going to save all of the major European banks. It’s already shown its will to do so.”

To find out more about Lawrence Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.

© Creators Syndicate Inc.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved