At this point, it is well-known that I have written quite a few bearish articles regarding banks. In particular, Bank of America (NYSE:BAC), which is one of my favorite trading vehicles.
At this point, I have come across a great short-term opportunity on the long side without retracting my bear case on the longer term.
My bear case is mainly built on the failure of the so-called 'reflation' trade. It is highly unlikely that we are entering a new era of above-average inflation backed by high economic growth. This is visible when looking at the yield curve, bond prices, leading economic indicators, commodities and credit growth.