Wells Fargo Stronger than Ever

When billionaire investor Warren Buffett speaks, people listen. And his silence over the Wells Fargo scandal has upset a lot of people. His firm, Berkshire Hathaway, has a lot of money invested in the bank, and experts expected Buffett to be quick with a comment about the company’s corruption, distancing himself from the company immediately. This didn’t happen though until very recently. In his comments, he decried the actions of the company as wrong and criticized the incentive program as immoral. However, the bigger issue for Buffett was that good people made foolish decisions. Most notable of these was former CEO John Stumpf, who resigned in October of this year. According to Buffett’s comments to CNN, Stumpf made a big mistake, and then when it was discovered, he didn’t correct it.

Wells Fargo is the third largest bank in the United States by assets held, and it is one of the more popular financial stocks amongst both day traders and binary options traders. Having a strong trading strategy for this type of stock is important, and although much of the whirlwind is in the past, it’s a strategy that can be applied in other situations, too. For example, when Wells Fargo first dropped in price, the drop in price was extremely severe. From a fundamental point of view, the company’s price was too low, creating a lot of opportunity to go long with the company.

Wells Fargo has had a rough several weeks since the announcement of the scandal made headlines in September. For many weeks, Wells Fargo struggled to keep their stock price at a respectable level. Now that the company has made strides to correct the issue, the stock is now at a healthy price. In the surge of stock prices after the news that Trump was elected to President, Wells Fargo was one of the biggest gainers, gaining more than 6 percent in just a few days. For those that had been following the company for several months, this jump wasn’t a surprise. The timing of the jump in price was the greater variable. The surprise of the Presidential election results was the perfect catalyst to push Wells Fargo in the direction that it was supposed to go. Some sites you should check out to catch up on the latest news include, bestbinaryoptionsbroker.org, reuters.com, and Google finance for the latest quote.

Traders need to be aware of many different factors if they want to be successful, and the news is one of the biggest short term market movers there is. However, unless you have an understanding of both fundamental and technical analysis, you will not be able to use the news to your full advantage. This goes for any kind of trading, be it day trading, binary options trading, or any other marketplace you can think of. It applies to stocks, indices, commodities, and currency pairs. Wells Fargo’s current story is a great example of this.

Buffett’s comments might not have made other Wells Fargo shareholders happy, and the delay in publicly acknowledging the situation certainly did not make people happy, either. But the situation is still not fully resolved, and like Buffett has said, it is a much more complicated issue than it seems at first glance. However, unlike what Buffett did with Goldman Sachs, he is not helping to rebuild the company, but rather is taking on a more passive role as one of the largest investors. This is a much more reassuring long term thing, though. It indicates that Wells Fargo does not need a major renovation, but rather just to address the ethical issue that was the main cause of this scandal. The big jump that we have seen in Wells Fargo’s price is a clear indicator of this.