Time to accumulate financial stocks?
I think we should accumulate financial stocks in the next 18 months.
We must specially accumulate banks and financial companies with good balance sheets, not much exposure to commodity and property market, with good customers, less bad loans, and going to recover before others with continuous, reliable earnings in the next 05 years.
I think there will be great opportunity in this sector in selected banks and companies through out the world in the next 18 months. Once sentiments improve, there will be great demand for financial stocks in the next 05 years.
Any other thoughts. Thanks.
Best Answer
270 points
BradOK answered 3 months ago …
18 months is a very big window. I think accumulating financial stocks now (as more and more firms will be shelling out money for everything from adjustable rate securities to credit card securities write downs) is premature and wreckless. I'd wait until next year before I even considered touching any company in the financial services space. We still haven't seen the worst of the housing crisis. Don't try to catch a falling dagger here!
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114 points
161 points
kobla answered 3 months ago …
I think its a better trade for now,, I've been trading BAC, C, WB, AXP ,,, there seems to be a $3 to $6 price swing every couple of days depending on the news. There is also going to be another one or two years of write-downs.
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304 points
larryat36 answered 3 months ago …
With the news still out on most of the banks and financials would not be anything that I would be accumulating at this point. Maybe when the industry makes some kind of a turn. Buying a good house in a bad neighborhood even cheaply is not always a good buy.
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alanj answered 3 months ago …
Yes, but not yet. I would wait until the sector dips into oversold territory and then makes a movement to the upside before considering buying.
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