Bank of America Corp (NYSE:BAC)
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One of the country’s largest banks by assets and branches, Bank of America also provides credit cards, asset management, and other money-related services.
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One of the country’s largest banks by assets and branches, Bank of America also provides credit cards, asset management, and other money-related services.
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This bank is starting to trade like a small cap internet stock. The wide price swings follow the risk on - risk off trade, which is triggered by news coming out of Europe. The uncertainty of the banking system there and the effect that any defaults in Europe will have on the large banks in the US appears to be the source of this volatility. With various changes that are impairing the big banks ability to generate their historically high profits, it is likely that the bank's share price will continue to fall into 2012 until it reaches a new normal. I'm speculating that the big banks have further to fall than the overall S&P 500.
shame ,, BAC will continue run you may want to end your pick==check out SD! GL>
You may well be correct, but like you mentioned, it is speculation. I think your last sentence implies that the overal S&P will be continuing to fall, though it is a new year now so I'm not sure.
Do you see BAC, JPM, etc., making a move upward now? BAC has been climbing up from 5 bucks to around 6-7, for whatever that is worth. JPM has earnings week now, and I've seen Mr. Dymon a little too often lately on TV to make me think they're going to be bad. Of course, he may just being playing the role of cheerleader.
I was thinking that banks and technology had the biggest potential upside in 2012, but that could also head south toward the downside. Perhaps I'm the one speculating now.
Good luck and I look forward to reading your future posts.
Buying bank stocks at this time may be a reasonable gamble if you believe that the following scenario will play out:
1. JPM poor earnings report drops the major bank stocks in the near-term, creating a potential buying opportunity.
2. The new voting members of the FED (later this month) will be more inclined to try another form of QE.
3. Euro/US dollar ratio continues to fall (Jim Rickards' KWN blog), especially given the recent S&P downgrades of European countries.
4. Attempts to cheerlead the market higher during earnings season is met with investor apathy.
5. More talk of a Greek default and the derivative disaster that potentially could develop gets more press.
6. The FED comes out with QE by another name to save the system again. Dollar debasement first helps the banks, with the inflation bill being sent to the population sometime down the road. The rapid rise in bank stocks could provide significant short term profits, but holding them too long will likely result in no gain at all or maybe even a loss. I bought and sold BAC a few times in 2008 - 2009 for some very short term gains (20%), but I didn't hold it for the 100+% gains that it had since I thought that it would likely revisit the $3-$4 range again. I don't view this as investing, it's more just speculation or gambling.
we'll see.....
Bac Is going to be up to 20$ in no time They have pulled them selves together and starting to looking ahead. Unforgivably you are wrong. But only time will tell.