These companies are not going to see their markets jump back immediately. Their earnings power has been lowered. This is a reason to sell not buy. The theory that if the company writes off $2 billion it should see its stock price up $1 and if it writes off $6 billion the stock should jump $3 is not one I can embrace.
– Richard Bove, Banks Analyst, Punk Ziegel
The interesting thing to me about this quote is that it sounds so strange and out of place in the current market environment. And yet, in the cold hard light of reason, isn’t it completely obvious?