RE: RE: O'Leary says MFC toxic waste $10 bk valRoyal Bank was also downgraded this morning and still closed higher.
About MFC
S&P "We lowered the ratings on Manulife Financial and its insurance operating companies given our belief that the prospective earnings profile of the U.S. operations will be weaker than historical levels given the current economic environment," said Standard & Poor's credit analyst Robert A. Hafner. The firm's equity and interest rate risk, while declining, still remains high relative to its peers
Don't make sense, why the downgrade if the equity and rate risk is declining ?
The S&P 500 and TSX are breaking new 2 years high and Interest rate is moving higher
It shows the Big Players have the control and can use their buddies to downgrade whenever
they want to drop the stock. Remember when Citi downgraded MFC for no sensible reason,
the stock fell from $15.80 to $14.26
So MFC is now downgraded because their risk is higher than their peers, even though their risk
on equity and interest rate is substantially lower
However the downgrade is on the Debt and not the stock, so the stock might resume its upward trend tomorrow.