BBT has 50 Billion in residential mortgages. This taken from their 2007 annual report. So they are not immune. They also have investments in stocks and bonds etc. They are leveraged, what 10:1? Not sure. They are a bank. But as banks go, the credit rating agencies sure like them and they are up there amongst the top banks. (US Bank is about the only one I can think of that might be better). Any ideas about OTHER banks that are good.
I agree with you. We will MAYBE have some irrational exuberance post-election, however it will be short lived. Friday when the jobs number comes out we may be in for a surprise. I dont think BB&T can pierce through its resistance, which is somewhere around where you sold, so good job on that one.
Looking at the technicals, if you look back to even late 2007, any spurt over $36 appears to be short lived. Even today, with everyone excited about the election it is having a hard time holding above $36, though the volume is very light. I'm betting that it will close down this week.
We will see plenty more opportunities to buy. This stock will be down to $33 - $34 range in no time, even though I admire the company.
I think that BB&T is building base and will trade between $38 and $45 for the next months...until they decide to buy someone or someone snags them! Their balance sheet is too good...someone will want them if they decide not to be the big one!