The horizon is profit from BAC is months to several years. If your horizon is hours or days or weeks, you should sell. If you can hold onto your investment for a year, or 2, or 3, you are probably going to be rewarded. The market is of course reacting to the huge known expenses the bank has had to make to attempt to emerge from the Countrywide mortgage mess - and there will be more charges in the coming quarters. But once clear of all this - perhaps next year - there is a very strong probability that the value of this stock will increase substantially. Just depends on your time horizon and tolerance for risk.