Transformation: Citi & Wells Fargo announcing layoffs while increasing their AI investments, signal a familiar pattern in banking: streamline cost base, modernise infrastructure & hope the transformation is successful.
These moves can translate into long term profitability but the payoff depends on execution & whether legacy systems can be merged well.
High potential, high complexity.
Certainty: Certainty names like Goldman Sachs & Bank of America operate like wellrun machines. Predictable earnings &diversified revenue streams.They are steady, reliable & less dramatic.
Which camp am I in?
Neither. I am in the disciplined camp.
I don't chase narratives. I don't pick favourites. I let $Financial Select Sector SPDR Fund(XLF)$ do the heavy lifting.
Certainty is comfortable. Transformation is exciting. Disciplined allocation is where the long term returns are built.
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