Trying to call the bottom to the finacials and banks is a foolish game with too much risk and not near enough return. Yes many banks will most likely make it through this rough patch and come 10 years from now may be at their previous highs, which in many cases will be a 3-5x return (not bad by any means over 10years), however for a more intermediate, 1-3 year term it is anyones guess which banks have hit bottom, which will hit rock bottom and which may survive and flourish. BaC really doesn't strike me as the best of breed and I feel for now you would be better off with a HSBC, JPM Chase, or GS (if you want to go to include Investment firms). These 3 have shown far better risk management and management decisions in the past year or so during the credit turmoil, and although they have not have fallen nearly as hard and do not potentially have the same upside potential from a sudden and dramtic reversal (which once again I think is unlikely) they have shown better performance over the past year and I feel will continue to do so.
To sum it up wait awhile till the dust truely settles then start you bargin basement picks. In the very long run banks will eventually be profitable again... but there is no reason to make a run on the banks now (yes that pun was intended)
$33.28 (08/05/08)
