Longer term trades-financials

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

Quote from JRworldwide:

2008 has me very excited with the housing/mortgage/credit crisis and the buying opportunity's that are unfolding now and looks to be extreme in the near future with more write downs.

Who else is looking at scooping up some giant banks and such and holding for a good 3-5 years+ as recovery develops?

Thoughts? Discussion plz...
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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.
 
Quote from Lights:

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