Stock Market Trends: Merrill’s Call is Telling
Merrill Lynch came out with a midday downgrade of Goldman Sachs, Lehman Brothers, and Morgan Stanley. It said that the credit crunch is far from over and that investors are underestimating the scope of it. This may very well be true, but shouldn’t Merrill have downgraded its own stock too? Of course we are being facetious, but there is some truth to this. If they see some monsters still in the closet of their own company, it will give them more confidence to proclaim they exist in other companies as well. It’s something to think about for those of you who are thinking of committing fresh capital to the financials here.
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