Sometimes cynicism will serve you well as a trader. Right now, the big investment banks look still like great opportunities based on a cynic's view.
Goldman Sachs(GS Quote), for example, after bottoming below $50 a share before the start of the year, closed on Tuesday at $176.51. Morgan Stanley(MS Quote), at one point thought to be in real trouble of 'Lehman-like' dissolution and priced at under $7 closed on Tuesday at $33.70. Much of the recovery that these shares have seen is merely because these institutions didn't see the end that some predicted for them. It now appears certain that these two, along with the other consolidated powerhouse JPMorgan Chase(JPM Quote) will be the three strongest investment banks survivors of last year's carnage. And here's where the cynicism starts to figure in. With all the anger, bailout money, congressional hearings and proposed legislation, it seems also clear that all the mechanisms that allowed these banks to make outsized profits from easy leveraged capital and monopolized derivative markets are still firmly in place and unlikely to change. Profits for the biggest banks are poised to break all records in this recession year. Between Goldman, Morgan Stanley and JPMorgan, Bloomberg News estimates a $30 billion bonus pool this year, up 60% from last year and the highest since 2007. Now, we can all be outraged at this, and we should be. But, better yet, we should try to make some money from it instead. Loading Comments... < Previous 1 2 3 Next >SHARE:
Featured Photo Galleries Go to Slideshow ArchiveConnect with TheStreet
Dow Jones S&P 500 NASDAQ 10-Year Note 10,278.41 1,097.37 2,163.16 34.74 Oil * 77.88 UP 31.44 UP 4.36 UP 12.08 DOWN 0.08 10 Yr 3.47% SPDR Gold 109.49 +0.31% +0.40% +0.56% -0.23% Data delayed 20 minutes More From TheStreet Latest Headlines Top-rated Mutual Funds from TheStreet Ratings Jim Cramer Book Tour Top-rated ETFs from TheStreet Ratings Find returns with the Dividend Calendar Top Rated Stocks from TheStreet Ratings Twitter RSS Facebook YouTube var config = new Array(); config["videoId"] = null; //the default video loaded into the player config["videoRef"] = 10624943; //the default video loaded into the player by ref id specified in console config["lineupId"] = null; //the default lineup loaded into the player config["playerTag"] = null; //player tag used for identifying this page in brightcove reporting config["autoStart"] = false; //tells the player to start playing video on load config["preloadBackColor"] = "#FFFFFF"; //background color while loading the player /* * set the player's size using the parameters below * to make this player dynamically resizable, set the width and height as a percentage */ config["width"] = 320; config["height"] = 281; /* do not edit these config items */ config["playerId"] = 1119319182; createExperience(config, 8); TSCM.video.Player.isRefId = true; //TSCM.video.Player.deeplink = vidid; See More Videos adsonar_placementId=1341369;adsonar_pid=879768;adsonar_ps=-1;adsonar_zw=320;adsonar_zh=280;adsonar_jv='ads.adsonar.com'; Brokerage Partners YAHOO.util.Event.on(window,"load",function(){ setTimeout(function(){ TSCM.util.attachScript('scr_intellitxt','http://thestreet.us.intellitxt.com/intellitxt/front.asp?ipid=10685'); },1200); }); Sponsored Links Get your credit score in 2 easy steps for free. By Experian Consumer Direct var ads = [ { link:"http://FisherInvestments.click-url.com/INV/go/131834384/direct/01/", text:"How to plan for a secure retirement.", trk:null }, { link:"http://clk.atdmt.com/TNY/go/175928010/direct/01/", text:"Get up to $300* every time you fly Virgin Atlantic. Learn more.", trk:null }, { link:"http://ad.doubleclick.net/clk;186067846;4639705;x?http://ad.doubleclick.net/clk;185806793;24432847;u?http://www.hp.com/sbso/special/instantsavings.html?jumpid=ex_R295_link/kimipgsmb/2Q08LJ/OJ-BDM/printingimaging/instantsavings/TheStreet", text:"Save up to $500 off top-selling HP printers. Click here to save", trk:null }, { link:"http://ad.wsod.com/click/8bec9b10877d5d7fd7c0fb6e6a631357/83.45.img.TEXT/", text:"Free stock symbol lookup: Scottrade stock research", trk:'http://ad.wsod.com/embed/8bec9b10877d5d7fd7c0fb6e6a631357/83.45.tk.TEXT/' }, { link:"http://ad.wsod.com/click/8bec9b10877d5d7fd7c0fb6e6a631357/83.45.img.TEXT/", text:"Free stock symbol lookup: Scottrade stock research", trk:'http://ad.wsod.com/embed/8bec9b10877d5d7fd7c0fb6e6a631357/83.45.tk.TEXT/' }, { link:"http://clk.atdmt.com/DEN/go/171694938/direct/01/", text:"Get a guaranteed return. Lock in a great rate on a Citibank CD.", trk:'http://view.atdmt.com/DEN/view/171694938/direct/01/' }, { link:"http://www.entrepreneur.com/business-opportunities/index.html?cam=thestreet&cid=Homepagetextlink1109", text:"Be Your Own Boss and Start your Own Business Today!", trk:null }, { link:"http://www.usfunds.com/adclick.cfm?adid=2212", text:"What's Driving Gold? Learn more.", trk:null }, { link:"http://ad.doubleclick.net/clk;219522223;41227940;w", text:"Plan for your family's needs with help from Merrill Lynch", trk:null }, { link:"http://ad.doubleclick.net/clk;219173989;41227940;r", text:"Pursue your goals with help from a Merrill Lynch Advisor", trk:null }, { link:"http://www.goldline.com/d/index.html?id=557&utm_source=thestreet.com&utm_medium=banner&utm_campaign=street-gold-delivered", text:"Goldline.com – A leader in gold investing since 1960.", trk:null }, { link:"http://ad.doubleclick.net/clk;218753205;41757528;l?http://www.optionsxpress.com/?cmpid=tlstreetros", text:"Trade Options, Stocks and Futures in One Account at optionsXpress", trk:null }, { link:"http://www.entrepreneur.com/business-opportunities/index.html?cam=thestreet&cid=Homepagetextlink1109", text:"Be Your Own Boss and Start your Own Business Today!", trk:null }, { link:"http://ad.doubleclick.net/clk;219059876;42243733;o?https://www.blackcard.com/app/japply/lp/26879.jsp?campaignid=0001130&obcreative=0000000&obadloc=006&obchannel=005&ibchannel=03&partnerid=1394&referrerid=STRBWN0004&sid=text", text:"The Visa Black Card. Enjoy 1% Cash Back or Travel. Apply Now!", trk:'http://ad.doubleclick.net/ad/N5928.1199.8344890806521/B3868511.4;sz=1x1' }, { link:"http://clk.atdmt.com/ANY/go/173953744/direct/01/", text:"Take advantage of new opportunities at ups.com/whiteboard", trk:'http://view.atdmt.com/ANY/view/173953744/direct/01/' }, { link:"http://ad.doubleclick.net/clk;217859701;36852981;v", text:"Invest with U.S. Trust", trk:null }, ]; function __trackingpixel(url){ var ord = Math.floor(Math.random() * 100000000000); if(typeof url != "undefined") { if(url.indexOf('[timestamp]')!= -1) { url = url.replace("[timestamp]", ord); } return ""; } } var counter=-1; var limit = 3; function __write_textlink() { counter++; if(counter >= limit)return; var index = Math.floor(Math.random() * ads.length * 10 % ads.length); var it = ads.splice(index,1); var o = it[0]; document.write(''); document.write( o.text ); document.write( '' ); if(o.trk != null){ document.write(__trackingpixel(o.trk)); } if(ads.length > 0) { __write_textlink(); } else { } }; __write_textlink(); TheStreet Premium Services All Services Action Alerts PLUS Get free access to Cramer's portfolio picks at Action Alerts PLUS - Try it now Free RealMoney Jim Cramer's RealMoney team of 70+ Wall Street pros will give you wealth-building strategies - Get started Free RealMoney Silver Doug Kass + our 5 Premium Services - all in one place - Get a free 14-day trial today Stocks Under $10 David Peltier is ready to help you find affordable Stocks Under $10 which could lead to a big-money payoff - Get access to his portfolio FREE ETF Action Don Dion's brand new service can help investors at all levels build profitable ETF portfolios - Learn more document.write(unescape("%3Cscript src='" + (document.location.protocol == "https:" ? "https://sb" : "http://b") + ".scorecardresearch.com/beacon.js' %3E%3C/script%3E")); var beaconurl=""; if(TSC.util.isDefined(document)){ beaconurl=document.URL; try{ if (top.location != self.location){ beaconurl=document.referrer; } }catch(e){} } COMSCORE.beacon({ c1:2, c2:"6036014", c3:"", c4:beaconurl, c5:"", c6:"", c15:"" }); View Directory Jim Cramer Doug Kass Ron Insana Breakout Stocks Options Alerts Stock Under $10 RealMoney Don Dion's ETF Action Hot Topics: Gold - Fast Money - Apple Tablet - Droid - Cramer's Picks - Windows 7 - Health Care - Mad Money - Earnings Resources About Us Advertise Corrections Customer Service Employment Investor Relations Make a Suggestion Privacy Policy Readers' Feedback Sitemap Video Sitemap Subscribe Terms of Use Financial News Archive Topic Archive TheStreet Premium Services Compare All Services Jim Cramer's Action Alerts PLUS: Now any level of investor can trade right alongside a Wall Street pro — and enjoy 24/7 access to his portfolio! Learn More Login NEW! Don Dion's ETF Action: A concise two-step strategy for learning and trading in this increasingly lucrative area of investing. For all levels of investors! Learn More Login RealMoney: Jim Cramer's team of 70+ investment pros offer a daily wealth of fast-breaking market news... analyses... red-hot opportunities...and wealth-building strategies. Learn More Login RealMoney Silver: The genius of Doug Kass + 5 Premium Services = an unrivaled group of expert fundamental analysts, technical analysts, and Wall Street observers. Learn More Login Breakout Stocks: Bryan Ashenberg combines sophisticated screening software with eagle-eye analysis to find small and mid-caps ready to break out! Learn More Login Market Movers Deep in the Money Calls Stocks Under $10 Top Gun Trader TheStreet Ratings Daily Swing Trade Top Stocks ETF Shark Alerts Options Alerts try { function DM_onSegsAvailable(segs, cust_id) { for(var i=0;i /** * appends an ad using an existing container as an 'anchor'... works as follows: * 1) DART ads render in containers off screen (ie. #boxAd) * 2) the actual ad (#boxAd) is removed from the DOM and appended to the placeholder (#boxAdContainer) * 3) we kill the absolute positioning on the actual ad (#boxAd) to make it visible * * NOTE: to add something to the lazy loader, add it in TSCM.ads.placeLazyLoadingAds below * * @param adId string the id of the actual ad container (where the DART tag lives) * @param placeholderId string the id of the placeholder element */ TSCM.ads.appendToPlaceholder = function(adId, placeholderId) { //bail out for invalid args or missing elements if( !YAHOO.lang.isString(adId) || !YAHOO.lang.isString(placeholderId) || !YAHOO.util.Dom.get(adId) || !YAHOO.util.Dom.get(placeholderId) ) { return; //die quietly and make room for more calls to this function }; var ad = YAHOO.util.Dom.get(adId); //store the actual ad DOM element ad.parentNode.removeChild(ad); //remove ad from the DOM YAHOO.util.Dom.get(placeholderId).appendChild(ad); //append the ad to the placeholder ad.style.position = "static"; //show the ad! }; /** * function wrapper that places all DART ads using TSCM.ads.appendToPlaceholder * if appendToPlaceholder can't find the elements specified, it just returns and is ready for the next call */ TSCM.ads.placeLazyLoadingAds = function() { // DART 1 (banner) TSCM.ads.appendToPlaceholder('ad728x90', 'bannerContainer'); // DART 1 (expander) TSCM.ads.appendToPlaceholder('expanderad', 'expanderbar'); //DART 2 TSCM.ads.appendToPlaceholder('customUnit', 'cauContainer'); //DART 3 TSCM.ads.appendToPlaceholder('boxAd', 'boxAdContainer'); //DART 4 TSCM.ads.appendToPlaceholder('secondBoxAd', 'secondBoxAdContainer'); }; YAHOO.util.Event.onDOMReady(TSCM.ads.placeLazyLoadingAds);Vid Desc
After the Bell
Before the Bell
Booyah! Newsletter
ETF Weekly
Midday Bell
TSC Top Ten Stories Newsletter
University Newsletter
Winners & Losers
TheStreet Mobile Edition
Take Our Tour
Connect with TheStreet
Read Full Article »