Do you think it would be wise to take stock in Wells Fargo??

Question

It doesn't seem that they are hurting much, yet stocks are falling.. Or were.. I'm thinking Wells will gain more from this "mortgage crisis" in the long run as other companies will go under because of it.. Freeing up more business.. Suggestions? Advice??

Answer 1

I agree but I also heard alot of bad things from that bank too. They like many others are a complete rip off that is why people could be loosing their homes too.

Answer 2

Wells Fargo is probably the strongest large American bank. I prefer them over the others. They might be able to buy up the other banks which go broke. You might consider buying a long term call option (jan 2009 or 2010), that way you risk less capital.

Also consider the finance ETFs, XLF, and UYG; the latter doubles the price action of the big banks.

Answer 3

I think wells is a good investment. They have raised their dividend 10 percent while other banks are losing money.