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Investment Banking Uproar

What can we learn from this?  First, you will find that the market is emotional.  The thousand dollar question being asked is why has the economy done what it has?  There are numerous fundamental reasons (reasons related to measurable economic factors) but there are others based on emotion.  Investors, some responsible for billions of dollars, got scared which made others get scared.  The stock market was down today, in part, because investors don’t like when something is in flux.  They like to hear of done deals, not deals being negotiated.

We must also take note that the M&A market (Mergers and Acquisitions) is starting to come back and that’s a signal of an economy that is improving.  At least a little bit.  Although this will make some waves, this merger will be a good thing for the banking world because investors will see Morgan Stanley as a little more stable and with a clear business model.

How can you make money on this?  Invest in Morgan Stanley although I wouldn’t invest in any bank right now.

Talk Back:  Why do you think banks are the black sheep of the market right now?

About The Author

Tim Parker is the owner of @ECS, LLC a company specializing in financial and small business content. His writing has appeared in many of the top financial blogs including Investopedia, Yahoo! Finance, Benzinga, Business Insider, Forbes, and the Intuit Small Business Blog. Find him on Twitter @expositioncreat Elementary Finance is an ECS Property.

Number of Entries : 290

Comments (1)

  • Rommel

    In the recent recession in our economy it is true that investors are being afraid to invest their money. But for me with just proper research, analysis, planning and execution your investment can be successful. Chicago Investment Banking

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