Goldman (Sachs) cuts financials, admits goofed on upgrade (of financials)

[UpInArms]

Source: Reuters

BANGALORE (Reuters) - Goldman Sachs & Co strategists urged stock investors on Monday to "underweight" U.S. financial and consumer shares, admitting it was wrong when it upgraded both sectors just seven weeks ago.

The downgrades sparked selling in the two sectors as investors feared that weakening consumer demand and deterioration in the credit markets will weigh on profitability.

"We boosted our consumer discretionary and financials weights in May on the belief the sectors would benefit from bank recapitalizations and fiscal stimulus," Goldman strategists led by David Kostin wrote. "Our thesis was clearly wrong in hindsight."

Goldman had previously urged investors to overweight consumer stocks and maintain a neutral weight in financials.

<snip>

Financial stocks had fallen 18 percent since the May 5 upgrade, compared with a 5 percent drop in the S&P 500, Goldman said, as investors grew increasingly worried that more lenders would cut their dividends and conduct dilutive capital-raisings as losses mounted from mortgages and other debt.

Read more: http://news.yahoo.com/s/nm/20080623/bs_nm/financial_research_goldman_dc

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goofed????

and these guys are suppposedly the pros???

[Tandalayo_Scheisskopf]

1. No, they lied through their teeth...

To get six or seven relatively fat weeks.

It is past time for a government investigatory task force and indictments by the trainload.

[Kutjara]

2. They needed some time to dump their holdings before...

...letting everyone else in on the news.

[Arctic Dave]

4. I'm glad I'm not the only cynic, because that was my first thought too.

Hold the house of cards up long enough to dump as much exposure as possible then let it fall.

[KoKo]

3. Ahh...now I know why "Mad Money/Cramer" is pushing "Repug Line" for McCain...instead

of his Dem Roots....(voted for Gore and sounded Alarm Bells on Mortgage Melt Down) but NOW he SHILLS FOR McCAIN!

Disgusting the "Turncoat GE employees...they pander "Left" when it suits them...but their "shoes" are always in the Repug Camp.

NEVER FORGET THAT...! :puke:

[bluesmail]

5. LIES! ALL LIES!

They are the media. (IMO) On Edit: Nothing to change or add, sorry