Letter to the Editor of Barron's
To the Editor:
Barron’s June 13 article, “U.S. Financials: Time to Hit the Books,” by Andrew Bary, makes a case for buying certain big bank stocks that have “skidded so much this year”. On the following Monday, after this article was published, the shares of the aforementioned banks predictably experienced “Barron’s Bounce”. I’m having trouble, however, with the fact that the shares of those very six banks; Bank of America, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley and Wells Fargo rose on Friday, June 10, in a severe down market, while Fidelity Select Banking (FSRBX), Fidelity Select Brokerage and Investment Management (FSLBX) and Fidelity Select Financial Services (FIDSX), which even included some of those same big bank stocks, went down significantly on that same Friday. Following Occam’s razor, which requires not to multiply entities unnecessarily, I conclude that somebody, whether in your employ or outside, leaked the recommendations before the article even went to press.
William A. Percy