The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider beleaguered financial services firm Morgan Stanley
Here at the Motley Fool, we like to consider both the good and bad sides of an investment. In this article, I've highlighted three of the main bearish arguments on Morgan Stanley today. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Morgan Stanley in CAPS.
1. Regulatory crackdown
While Morgan Stanley looks to beef up its trading operations, a recent report by JPMorgan
2. Compensation costs
Goldman Sachs is partying like its 2007 again, distributing high payouts and bonuses to employees. That relative luster is putting pressure on Morgan Stanley to retain its own staff. Year to date, Morgan Stanley has paid or set aside pay and benefits of about 70% of its revenue, in comparison to its recent average of about 50%. The high compensation costs prompted a downgrade from a Bank of America
3. Risks remain
One year after the failure of Lehman Brothers and the "rescues" of AIG
To see details of what CAPS members are saying now about the company, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts directly to this story in the comments box below.
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Fool contributor Dave Mock is still amazed at how any right-minded individual could order a macho burrito without sour cream and guacamole. He owns no shares of companies mentioned here. The Fool's disclosure policy takes its soup cold and its beer warm.