I lost, No Problem, I’ll sell Assets to Make it Up

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Morgan Stanley (MS) lost $3.59billions, and guess what, China Investment Corporation will pay it $5billion by buying more than 9% stake in the company. Sweet! Just a week ago, it was UBS, earlier it was Citi. Aren’t financial institutions on Sale? Buying it for a price what it was 3 years ago, sweeter! Actually it is even cheaper than that, why? You guessed it right, dollar value has been sinking against all the major currencies as well. US assets are cheaper and are on sale.

I earlier mentioned that Sovereign Wealth Funds (SWF) are going to shape the next decade and Banks are the first ones on sale. Come recession, quality Dow companies will be on next sale list.

So watch out next one, does Bear Stern has a new shareholder too? lets wait till tomorrow morning, we’ll find out when they report their number before market open.

Have fun, Profitable trading, OP

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