Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 09-07-2011, 03:13 PM   #21
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,644
Quote:
Originally Posted by FinanceDude View Post
Fro Warren, it's all about the warrants he gets with such deals.........
I seem to recall he is underwater on all the warrants. In the black on Wells common. I may be misremembering tho.

If we are lucky, the litigation will put BofA out of its misery. Couldn't happen to a sleazier bank.
jebmke is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-07-2011, 09:22 PM   #22
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 897
More info on WFC and Warren. I don't know why this is so enthralling. I must be bored.


-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Old 09-10-2011, 07:13 AM   #23
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,644
Quote:
Originally Posted by EwanRPark View Post
The banks and financial institutions are just out to rob you!
Robin Hood was an outlaw! The banks are worse!
Good business practise will produce profits - so why do banks offer such crappy returns on your hard earned money!
There are solutions!
Comments Very welcome
Because the financial services industry is a defacto cartel. OPEC is a rank amateur compared to Wall Street.
jebmke is offline   Reply With Quote
Old 09-10-2011, 07:28 AM   #24
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,518
Quote:
Originally Posted by EwanRPark View Post
The banks and financial institutions are just out to rob you!
Robin Hood was an outlaw! The banks are worse!
Good business practise will produce profits - so why do banks offer such crappy returns on your hard earned money!
There are solutions!
Comments Very welcome
Well, if banks are not safe what do you suggest we do to improve portfolio returns?
MichaelB is offline   Reply With Quote
Old 09-10-2011, 08:31 AM   #25
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,644
Quote:
Originally Posted by MichaelB View Post
Well, if banks are not safe what do you suggest we do to improve portfolio returns?
If you are already diversified and your allocation is approximately equal to your target, you have a couple of choices. These would potentially increase expected returns but obviously, with more risk.

Tilt your equity to small cap value
Increase your allocation to Emerging markets.

With both of these options, you have to have the stomach for the tracking error.

You could also increase your overall equity allocation but that involves risk as well.
jebmke is offline   Reply With Quote
Old 09-10-2011, 11:36 AM   #26
Recycles dryer sheets
 
Join Date: Jul 2008
Posts: 141
Don't be a hero.

There will be plenty chances to make money with financial stocks at some point in the future.

If you are thinking about buying XLF, at the very least I'd sell some sort of put option with a strike price below the market price. The October $11 put option will get you about $0.44 (x 100 = $44). That "sorta" means you will have a $10.56 basis ($11 - 0.44 = $10.56) IF it gets down that low in the next 6 weeks (and that's a lot better than buying it for $12.23 on Monday and watching it move below $11 over the next 6 weeks).

If it never gets that low, you've made $44 and perhaps that means the stock is moving up or going sideways. In which case, you might then want to go ahead and start buying the ETF because things look a little better (if it finds a bottom, there's plenty of time to make money, so don't worry about missing the first lil move up). I'd rather buy it at $15 as it moves up to $20 than to grab it at $12 and ride it up to $20 (my reasoning being that it's going to take a fair amount of good news to get it up to $15 and with the good news, I'd feel a lot better about owning it after there has been enough good news to move it up to $15 than to buy it today at $12 without a lot of good news).

Me? I'd wait and find something else. Maybe start looking at XLF again in the Spring after some of the banks have started to report better numbers. No need to be a hero.
TN_INVEST is offline   Reply With Quote
Old 09-13-2011, 04:35 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Quote:
Originally Posted by TN_INVEST View Post
Don't be a hero.

There will be plenty chances to make money with financial stocks at some point in the future.

If you are thinking about buying XLF, at the very least I'd sell some sort of put option with a strike price below the market price. The October $11 put option will get you about $0.44 (x 100 = $44). That "sorta" means you will have a $10.56 basis ($11 - 0.44 = $10.56) IF it gets down that low in the next 6 weeks (and that's a lot better than buying it for $12.23 on Monday and watching it move below $11 over the next 6 weeks).

If it never gets that low, you've made $44 and perhaps that means the stock is moving up or going sideways. In which case, you might then want to go ahead and start buying the ETF because things look a little better (if it finds a bottom, there's plenty of time to make money, so don't worry about missing the first lil move up). I'd rather buy it at $15 as it moves up to $20 than to grab it at $12 and ride it up to $20 (my reasoning being that it's going to take a fair amount of good news to get it up to $15 and with the good news, I'd feel a lot better about owning it after there has been enough good news to move it up to $15 than to buy it today at $12 without a lot of good news).

Me? I'd wait and find something else. Maybe start looking at XLF again in the Spring after some of the banks have started to report better numbers. No need to be a hero.

Reread the post.... wrong ETF.

I was looking at it from a longer term value oriented perspective (3 to 5 years if need be).
chinaco is offline   Reply With Quote
Old 09-13-2011, 05:12 AM   #28
Recycles dryer sheets
 
Join Date: Jul 2008
Posts: 141
Quote:
Originally Posted by chinaco View Post
Reread the post.... wrong ETF.

I was looking at it from a longer term value oriented perspective (3 to 5 years if need be).
That bank ETF (KBE) is even worse than the financial ETF (XLF). At least the XLF can buy insurance companies and REITs.

I sorta view financials and banks as VERY similar sectors. Therefore, I'll help interpret my original post and sum it up this way. Me? I'd wait and find something else. Maybe start looking .... again in the Spring after some of the banks have started to report better numbers. No need to be a hero.

Hey, but somebody's surely going to have a great story about how they bought that thing at it's lowest point. Why not you? It's only money.

Best of luck.
TN_INVEST is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Internet Banks question Chuckanut FIRE and Money 17 01-17-2012 06:40 PM
Federal Agency Set to Sue Major Banks Today or Tuesday Retire Soon FIRE Related Public Policy 39 09-07-2011 09:24 AM
Low Interest Rates and Banks Investments chinaco FIRE and Money 4 07-16-2011 01:29 AM
Banks Abandon Reverse-Mortgage Business obgyn65 FIRE and Money 10 07-03-2011 03:58 AM

» Quick Links

 
All times are GMT -6. The time now is 04:55 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.