Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
....and then there's is my ER in May......with an inherited portfolio that is 75% BAC....down from about $55/share this time last year....and I've continued to buy (what I could) on EVERY dip in price [-]that I was just SURE was the bottom[/-]....bought @$52....bought @49.50....bought @ $46....and now that I'm totally out of investable monies, is it time to "double down" and think about buying more on margin!??....nahhhh ....it was just a thought......[-]I hope!![/-]
...and it comes from all of the years of listening to the pundits......"buy on weakness"....."the time to buy is when everyone is running the other way".....wellllll......
Isn't THAT exactly where we are now ......so while I am NOT buying BAC on margin [-]if I can keep my wits about me[/-] , I really do think that it just may represent that other thing we have all heard about...."the buy of a lifetime" ....or is it just a fool and his $$$ being parted....
....forgot to add that Brewer and I are gonna laugh about all of this in another year or two...lighting our cigars with hundred $$$ bills, etc....(we hope!!)
I would hope you refrain yourself from buying on margin. My price target on BAC is 12, if it never gets there and the entire subprime mess reverses and banks make a dramatic reversal then perhaps I will reevaluate my outlook and price, but nothing that has happened from February on has changed my opinion that banks are a total catastrophic investment. Right now I am keeping on eye on that by watching HBAN and seeing if it drops to 10 and if BAC drops below it's multiyear low of 40.
If all is well and these things reverse course there will be plenty of time for me to buy at 50, it is inconceivable to me that the banks stops will just stop and make a reversal like a Google stock.
The banks and Bernake are saying it is getting worse and they don't know where the bottom is, the wisest and most experienced are really in a panic right now and are praying that rate cuts fix all. But how can the Fed cut rates with a collapsing dollar? Bernake knows he is in a pickle right now with all his tools not at his disposal.