Buy Wells Fargo?

[wescobrk]

Perhaps I'm a bit daft but given the IMF upgraded the US but downgraded Europe a couple of days ago and since Wells international exposure (to my knowledge) is virtually nil, is there a rationale why it should be down a few percentage points recently?

I bought a lot today but I don't understand the sell off. How can wells be hurt with germany slowing?

[Libs]

Maybe it goes something like this:

 

Slowing WW growth / recession = lower interest rates = compression of net interest margin = disaster for lenders.

 

So the fear is, Europe is slipping into recession / deflation, and it will impact us. I saw the 10-yr is down to 2.33% here, for instance..

 

Isn't this what killed the Japanese financials?

 

It's my biggest fear as a WFC shareholder.

[indythinker85]

Importance of ROIC Part 5: A Glance at the Last 42 Years of Wells Fargo http://basehitinvesting.com/importance-of-roic-part-5-a-glance-at-the-last-42-years-of-wells-fargo/