Longer term trades-financials

Discussion in 'Stocks' started by JRworldwide, Jan 4, 2008.

  1. Yes, they'll eventually recover in 5 years, but doesn't mean they won't go down another 50% from these levels.

     
    #41     Feb 3, 2008
  2. No it doesnt...except that since I started this thread most of the financials are up +30%
     
    #42     Feb 3, 2008
  3. One variable to be wary of in trading the financials is the specter of government intervention, which could make the reasoning for certain trades (based on fundamentals, economic analysis, etc.) worthless.

    Wouldn't affect playing the long side on a recovery, but something to think about if shorting individual companies in 2008.
     
    #43     Feb 5, 2008
  4. Any thoughts on AIG?
     
    #44     Feb 11, 2008
  5. piezoe

    piezoe

    Yes, bank stocks can get still weaker as we move deeper into recession and more of their balance sheet woes are revealed. But for those banks with minimal exposure to bad paper (BXS for example) that maintain their dividends (and many will be able to do that) a further reduction in price by 50% is highly unlikely. Dividends place a bottom on price, so long as they are safe, and most bank stocks pay healthy dividends. Buying into further bank weakness has a high probability, imo, of doubling ones investment in 5 years or less. This is a good long-term investment in my book.
     
    #45     Mar 6, 2008
  6. Bought a little chunk of C today :eek:

    Slowely adding and have decided to add FNM & FRE
    to the group for the loooooooooooong term.
    Bought small lots of both of these today~

    gl all!
     
    #46     Mar 7, 2008
  7. Daal

    Daal

    if your going to try to catch a faling knife then at least wait for a vix spike and buy a quality company like WFC. C?are you mad?this guys might be in the kind of trouble that leaves shareholders without any returns for YEARS
     
    #47     Mar 7, 2008
  8. Yes I am buying WFC and opened a position at $26.25~

    No I am not mad just a value investor that looks out very long term.

    Read this thread from the start then discuss
     
    #48     Mar 7, 2008
  9. Eric Bolling when he was on Mad MOney was saying what a screaming buy GS was when it was at 190. Where will GS be in 2-3 years?
     
    #49     Mar 9, 2008