Yes, I am taking the gamble and going with the financial sector despite all of the reports. This decision is risky, but I have a good sense why I should chose this stock. With all of the big banks reporting their earnings this week and with Wells Fargo beating earnings, but getting beat in the mortgage business because of the smaller profit margins. Therefore, most of the financials got hit Friday. This is foreshadowing for this week, financial stocks could beat earnings, but get killed in the mortgage business. The financials will have a good year, and have good earnings, but with the news released from Wells Fargo being negative, the financials got drilled Friday. Morgan Stanley is less of a player in the mortgage business than Bank of America, Citigroup, Wells Fargo, and others therefore, if Morgan Stanley beats its earnings, the effect from the smaller profit margins in the mortgage business will have little effect on Morgan Stanley, causing it to be Alleyway Investing's stock of the Week.
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