Well, the price of the stock has been jumping in both directions, so maybe you'll still get a chance to get out with a profit. That said, I think this is a risky time to get into JPM, as it appears to be going for at least a retest of its yearly low at around 35. Furthermore, there is so much iffy stuff happening in Europe, in foreclosures, and in the dollar itself that financials are not a place I would like to be long.
But then, who really knows? The best time to buy anything is when everything is up in the air and negativity is at its worst, but it really takes a lot of skill or luck or both to jump in when that point has arrived.
EU in turmoil. Recall if you will that in July the EU issued the joyous news that all of the European banks had passed their stress test with flying colors. Now here we are barely 120 days later and the Irish banks are ready to fail and stock prices on other major banks in the EU are tanking.
As for our own major American banks, their liquidity (and their very survival) would indeed be jeopardized if it weren't for the following:
1. Bailouts 2. Continued propping up with QE2 and borrowing at almost 0% then buying treasuries with that same money for a guarranteed spread. 3. Mark to market rules being suspended, thus allowing banks to continue to carry assets that are severely impaired - at least to the point where they are nowhere near worth what they should be.
I'm betting on FAZ myself, but you all can do as you like.