Never an opportunity better than today with the Fed rate cut which yielded a fake, manipulated broad market rally that makes our market completely out of sync with those of the rest of the world.
Whoever heard of a stock go up after a 95% decline in earnings. Short this turd and close your BoA accounts. Put your money in a credit union where it is safer.
You can almost buy any stock and expect a return in 5 years?
Now that is about the most stupid thing that I have heard. If it was just that easy, nobody would even follow there investments. Plus you want to be able to get a good return... not some crappy 9% return on your investment.. need to get at least 15% or greater...
The individuals that purchased Apple,Google, recently are not going to get a good return over the next 5 years... they will be hurting badly because people have paid way too much for future earnings.... just like they did with CSCO,YHOO,KO,GE in the late 90's.
Only one company that I can think about that you could maybe possible make an case for and that would be Berkshire Hathaway.
Financial companies have the reverse... Nobody wants to touch them, so there are opportunities in the sector...
However if the CFC and BAC deal comes about, any individual is going to be better off purchasing CFC over BAC because of the huge discount..
Don't get too frustrated with the market, as you get older you will gain experience...
Just remember the markets are not efficient or rational!
Jason agree 100% this rally just let the big boys sell in to the strength. The shame of it is there is always someone going wow this is cheap, buy all you can. Then as it keeps going down they are stuck and hold it for years before they get back to even. I think the CEO has lost credibility.First you loan CFC 2 billion, then you buy CFC (probably won't happen) then you announce that your own company is losing billions in the same loans. Yeah I want to dump alot of my hard earned $$$ in this company. This isn't the 80's where the rate was 11%, they went from 4.25 to 3.5. That is already so low its crazy. This stock gona break alot of hearts
Economists study the data that they are privy to to determine the state of the economy. Bernanke and company may very well have inside info on major companies to help steer the economy.
I've always wondered.. Now I'm sure of it. We have the FBI, the CIA and the FED (the economy is even more important)
There are secret meetings between the FED and choice companies, "count on that! "
First you have to understand the banking system:
BAC could have posted negative earnings and a rate cut could easily bring it back into the BLACK.
This rate cut puts more profit back into the banks.
There are more rate cuts on the way and earning should improve greatly after all the write downs.
"the Fed threw you a lifeline the same day BoA announced a 95% decline in earnings and ongoing concern in the mortgage markets?"
Yes, that seemed a little too coincidental, especially after Ben telling of "meaningful rate cuts" the same day BAC announced the CFC purchase.
The conspiracy theorist in me is beginning to believe that the Fed are doing what they can to prop BAC's stock price up to make sure the CFC all-stock deal doesn't fall apart. This is another reason I won't be selling any BAC here.
Hey there chicken little,
Did you know that the stock market was a discounting mechanism, and has therefore been pricing today's earnings disaster into BAC for the last several months?
Did you know that market bottoms happen when the largest possible majority of people think you'd have to be a complete moron to buy equities?
Did you listen to the BAC conference call, complete with earnings guidance and no dividend cut?
Do you realize that the Fed rate cut was not just a publicity stunt, but that short term interest rates are actually lower now, and the yield curve is steeper?
BAC's *future* outlook (what the stock market is pricing in today) is better now than it was on Friday. Why shouldn't the stock be up?
I took some profits from shorting homebuilders and locked some of it up in cd's a few weeks ago. When the cd's expire, I will take all of the money out and reinvest in stocks that pay higher dividends if rates go any lower. In fact, it looks like they are going lower. Lower rates make guys like me look for better returns elsewhere, so that adds up to fewer deposits for banks.
'She' asks why a stock would go up after reporting such a bad quarter.
Obviously most people who have been in the market for more than, oh I don't know, 6 months would realize that A) the market is forward looking and B) they did report a bad quarter, but they stated that they plan on getting right back on track, keeping the dividend secure, and getting back to the fundamentals that make this company a smart investment in the first place.
So even though prices fluctuate and no one really can predict day to day moves (at least not well) long term this company is a solid, safe, and smart investment.
If 'she' wants to argue that it might not be for the short term, fine with me. Our time horizons are probably vastly different.
"Never an opportunity better than today with the Fed rate cut which yielded a fake, manipulated broad market rally that makes our market completely out of sync with those of the rest of the world.
Whoever heard of a stock go up after a 95% decline in earnings. Short this turd and close your BoA accounts. Put your money in a credit union where it is safer."
This is trying to help people 'think for themselves'? I never knew that telling people what to do was a way to get them to look at things objectively.
Now that's a joke.