2 Answers

BAC stock closed just under $7.00 per share.  Banks are truly out of favor.  That's why they look interesting to me.  I tend to invest in companies that are out of favor.  When everybody seems to hate a certain stock, it becomes very cheap.  Most of the risk has already been priced into the financial stocks, in my mind.  My favorite remains J.P. Morgan, selling at a P.E. of 7 to 1.  I love JPM and I like BAC at these levels.

Note:  Warren Buffett has just increased his investment in MA Mastercard.  I like Visa and Mastercard as well.  If he invests in financials, he's saying that the bottom of the financial sector is in sight.  Keep a watchful eye on the financials.  Ease yourself gently into them in the next 10 weeks.

Caveat:  No guarantees from us here for any investment advice!

10 cents per share