I guess my real point is.. Do you really think the US Government will let the banking sector go much lower? Obama is a socialist who believes in governement intervention in such matters. as a banking crisis Logic says that Uncle Sam will step in if things get much worse. There is a limited downside, an unlimited upside here for banking stocks.
Well thats fine if you're looking at GS or Shittypuke. But getting into XLF here is not the samething as buying GS. In order for XLF to lose significantly more, ie down to 0 or $1 you would have to believe that the government and Obama will allow the entire financial sector crash which seems very doubtful! Frankly if XLF goes to 0 then the $1000 investment in a 100 shares of XLF is the least of your worries! So while I agree that thinking that any individual financial is cheap at these prices might not be a smart strategy but XLF at this level seems like an easy double if you buy and hold for a couple years....combine it with some simple covered call writing and its an easy double in a year or less.
I think the market is shaling all the bottom pickers loose hope I have seen it before. No one can nail a bottom But when the buying come in there will be such a surge in Financial ( a Major short squeeze ) that we will wonder why we did not buy at those levels. IT is only matter or time and the stock.
bond4tspanker- we have had enough of you. we all know you are "the kin" and you are just a scrub who belongs on yahoo just try someday and get a life---- you may actually like it
Yet another insightful thread by "bond tr4der" or one of his numerous aliases... http://www.elitetrader.com/vb/showthread.php?s=&postid=2189536#post2189536 What a sad life you must have to start thread after thread of "doom and gloom" and bogus links weekend after weekend.