I'm planning to buy BAC tomorrow. Is there any reason I should wait in your opinion?

Question

TY!

Answer 1

Since the MKT dropped over 3% on friday , you may be in a good position to accumulate. I don't think you'll get the best price on your order, but as others say it could be a good long term buy for a moderate gain. I can't emphasize long term enough.

Answer 2

Although a bottom in financials may have been put in, there still is a lot of potential for a new leg down if the economy turns worse. Also, there is a lot of Tier 3 accounting. Tier 3 are where the banks, like BAC, put assets that can't be valued and they don't have to report on their balance sheets. So, maybe it will be  good longterm buy, but at what cost? Are you willing to take a 10-15% loss if the market goes down further. I would say, do one of two things.

1) Buy BAC hoping for the bottom, but have a bailout if it breaks its 52 week low. Consider it insurance for your long term plan and take the small loss.

2) Buy the XLF, the exchange traded funds that tracks the financials. That way, you still have a long term play, but perhaps a little less risk because we don't know if there is another Bear Stearns out there.

Answer 3

If you buy BAC (or any other bank) you should be in for the long term.   BAC is not a short term money maker.

You should also be prepared for more short term pain.  BAC could drop some more.

But... my opinion is that it will be a good "long" term buy.   And if they maintain the dividend that will help offset any share price drop.