I bought XLF instead....less risk, more diversified if your really bullish on financials buy UYG. ULTRABULL for financials.
it most likely won't be until next earnings season. but then even more mortgages reset next year. that could cause even more mortgages to blow up sparking another round of write offs. right now nobody really knows the value of these assets. heck, they didn't before the meltdown. the banks are in deep doodoo and they're gonna need some sort of bailout. i wouldn't be surprised if a multi billion dollar bank gets broken up over this when the dust settles. i duno, maybe royal bank will take over citi's operations. here comes us canadians!
Citi, like most other banks, will die out of wounds from this mortgage crisis. It will have to be bailed out by the taxpayer. Before the bailout don't even think of buying.
Never price a stock relative to where it has been. Only to present and future. Citi and other financials futures look grim. Capital preservation is priority one at these times.
I bought a small position at 36.23. Don't forget that citi is one of the largest in its sector..if there is any relief, it will show in the blue chips first. Citi also signed on a new CEO, so im just going to guess that we can see a turn-around, even if just a small one. cm69
I got long 25% 4k in 1 account, short puts and calls..... and strgt short in the other 3x. to cover my anus.... long jpm by owning outfight and selling puts. Short every stocktrad3er name from right here right now
imo just go for smaller retail banks that focus more on their branches and have fairly conservative lending practices. canadian banks might qualify as good investments, not to mention the canadian dollar should do well. look for the value in a beaten up sector, don't go for the problems within it.
good point, but just about every, if not all sectors are taking a hit. When the real estate market bottoms, maybe so will these financial stocks.
there are still resets next year. we also went through one of the largest real estate bubbles in history, this is far from over. you could be holding a $20 stock right now with a very cloudy outlook.