If you plan to hold for 2-6 Quarters, you might win big.
I think there are clear signs that bank stocks are getting upside momentum all over the world.
-If you check the India Banks stock index, there is a clear positiv divergence compared to Sensex.
Only India Auto Index looks better than bank stocks. I think ICICI and HDFC are looking very good.
-The China Indexes are just starting up again, after 3 years of painful correction. The NASDAQ got cleared from the reverse -merger scams, and most China smallcaps are valued at historical low PE= 4-6. Take a look at Shanghai 25 index, or HangSeng or Shenzen Index the last couple of weeks. You might like the momentum and volume. And banks there lead the market.
-Developed Asia, especially the Nikkei and Kospi, despite all the troubles and bad news of island conflicts, could hold up pretty well. Even Japanes banks look very strong, like MFG and MTU. And the Singapore market is also lead upward by banks(!).
-The German banks just soared in the last 6 weeks, most banks gained 30%. Check Deutsche and Commerzbank.
-The USA banks are in much better shape than EU banks. The realestate market bottomed. BAC, and C looks very promising, but even the best-of-breed JPM, BK have 50% upside potential in 2 years.
In summary, for me it looks like "bank unpopulartity" era is over, banks have bottomed all over the world.
The smart money starts to flow into them now?
ING price, despite its extremly poor management, could hold up above $8 since 6 weeks now.
If the banks recovery will continue, ING might keep climbing. Maybe slower than the peer group, but the massive price potential is still ahead.