I am trying out a rather risky investment thesis by investing in financial stocks. I have begun to start building a position in the major financial stocks. I believe that the last few weeks have presented some good buying opportunities for financials. The three financial stocks that I have invested in are Wells Fargo,

The election is over and no matter how you feel about Obama, he will be the next U.S. president. A sharp increase in new debt could push up interest rates and continue the downward pressure on the stock market. Let's look at some possible winners:

This article look back at how Tom Au, author of A Modern Approach to Graham & Dodd Investing, made some great predictions in 2007 on the Dow stocks.

The buzz on Capitol Hill is that Congress could pass an updated version of the bailout bill before the end of the week. But Shah Gilani in Money Morning says taxpayers are being “force-fed a political solution, instead of a sound economic market-based solution to a financial crisis.” He says the the bailout bill has eight key failings.

Hank Paulson wants to spend $700 billion to buy up banks bad debt in the hope it can ‘fix’ the crisis on Wall Street. But there are ways to profit from the madness. Martin Hutchinson has picked three winners.

The New York Times has an interactive graphic that visually conveys the impact the current market crisis has had on the financial sector. It has market cap scaled regions for two time periods, September 12, 2008 and October 9, 2007. It would be interesting to have a similar chart by a value metric, such as book value.

Now that's a major market headline. Fear strikes Wall Street as several significant events hit the financial sector.

If Morningstar can’t measure risk, how can they value it?

It appears that Morningstar blindly regurgitates JPMorgan’s unchallenged assumption that they have a “fortress” balance sheet.

As the opening quote to this post highlights: expected value matters more than simple probability. The probability of something going wrong ....

But by keeping interest rates below the rate of inflation for three straight years starting in 2002, the Fed created a bubble in the housing market. That bubble has now popped, leaving in its wake a severe liquidity crisis.

Walking by the JPMorgan headquarters in downtown Manhattan you might be surprised to find Jamie Dimon standing on the side of the road talking to the limo drivers. Rest assured - he’s not asking about the weather.

Your humble editor is skeptical that this latest financial rally will turn out to be anything of substance… except another shorting opportunity when the time is right.

If you think the “Lost Decade” Japan endured during the 1990s was deep and painful, stick around: As the global financial crisis that was jump-started by the meltdown of the subprime mortgage market continues to unwind, the U.S. economy is headed for a financial Ice Age that will make Japan’s 10 wasted years seem like a single chilly night.

Perhaps this is why Bear Stearns isn't trading closer to $2.

Bondholders can use options to hedge a stock buy, and effectively buy the right to vote in favor of the deal for $0.35 per share.