Bank Of America Hits Paydirt For Now
Once again, it goes to show you how the market always knows the truth. Bank Of America Corp.(NYSE:BAC) gets Warren Buffet as an investor this morning. This investment that was made public around 9:10 am EST, it is causing a massive short squeeze in the Bank of America stock. BAC stock is trading higher by more than $1.50 to $8.55 a share. Traders can watch for other financial stocks to trade higher in sympathy to the BAC stock. Other leading stocks that could trade higher this morning include J.P. Morgan Chase & Co.(NYSE:JPM), Morgan Stanley(NYSE:MS), and Citigroup Inc.(NYSE:C).
Traders and investors can expect a short term bounce from this news. It is important to remember that Warren Buffet invested in Goldman Sachs Group Inc.(NYSE:GS) in 2008 when the stock was $125.00 a share. Goldman Sachs stock traded as low as $47.00 a share and only survived because of a government bailout. It is safe to say that the U.S. government will be back stopping this deal for their most beloved billionaire.