5 Popular Stocks Past Their Prime

Sell Citigroup; Buy Goldman

Say what you will about the relationship, it didn’t hurt Goldman Sachs (GS) to have its former CEO
as Treasury chief when the financial sector neared meltdown last fall. In the middle of the credit crisis, Hank Paulson’s plans ensured Goldman survived
the mess and thrived afterword. Sorry, Lehman and Bear Stearns.

And Goldman Sachs has greatly benefitted from their demise. There is less competition for trading and underwriting opportunities, and it shows on
Goldman’s bottom line. In its most recent earnings report, Goldman greatly exceeded expectations.

Citigroup (C) has not been so fortunate. Certainly, the Treasury helped it survive as well,
and the government has basically said it won’t be allowed to fail, but Citigroup remains a mess.

Goldman is the stock to own.

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