Goldman Sachs (GS)

Trading at 1x book. Pays over 3% dividend.

The consumer segment has been a mess, but there's upside in asset management that they stressed on investor day. Down only 6.5% which is a win.

He used to work here 40 years ago. The bank has totally changed. GS is embracing everyday consumer banking; it paid $2.23 billion for Green Sky (which specializes in consumer loan originations) at the top of the fintech craze. He doesn't like this shift.; in his days he was pushed to bring in super-rich clients. Instead, GS should sell its consumer division entirely.

He used to work here 40 years ago. The bank has totally changed. GS is embracing everyday consumer banking; it paid $2.23 billion for Green Sky (which specializes in consumer loan originations) at the top of the fintech craze. He doesn't like this shift.; in his days he was pushed to bring in super-rich clients. Instead, GS should sell its consumer division entirely.

They have an investor day Tuesday. Likes it for its 10x earnings, as low as it will get, because the capital markets business is dead.

They bought off more than they can chew, and this year will see retrenchment by cutting expenses. Shares will be rangebound for a while.  Comare their asset management business to Morgan Stanley's, which is performing far better. GS needs to fix this.

They'll likely change their CEO, but that signifies nothing. Their last quarter wasn't good and they admitted they made mistakes, but he'd remain long on GS.

Though he's bearish long term, an investor can nibble away here. Small caps are a good place to be, because of less exposure to the strong US dollar. Also, supply chain woes are easing. So, he has been adding to Goldman Sachs, Bank of America and Morgan Stanley. The market can move higher (short term). Caveat: Gas prices are up again, and inflation remains ridiculously high.