So I'm thinking of doing some bottom-fishing and grabbing some bank stocks-out of Citi, Wachovia, WaMu which?

Question

Which do you think has the best chance of surviving this market right now and seeing there price approach levels 2 yrs ago?

I'm not sure if they have bottomed out but I think its close and its time to pick a winner. If someone here gives me a great stock pick, I will be very "thankfull". Can't say anything else.

And if you would elaborate as to why you think a particular bank is going to rebound (or at least not bite the dust) please include that

Answer 1

I'd stock with the only the biggest banks which we know won't go under.  

Answer 2

I think they're all going down.  I would stay away from the financials.  The USD is circling the drain.  Buy physical gold and silver.  

Answer 3

i say neither

i agree with you that now is probably the point to buy stocks since they are at an all time low.

but wamu is suffering serious losses and if you keep up with citi news then you'll see that citi has also been facing fines(auction rate securities probe) all that junk

and wachovia has a high probability of being acquired...for a lot less than its worth, in my opinion

i'd personally go for morgan stanley since its stock price has been going up

or even bank of new york mellon since its one of the healthiest financial companies

Answer 4

It's too early to get into the financials.

Don't think of where prices have been. Your only concern should be where prices are going.

Answer 5

Citi has the best risk premium.  Stay away from Wamu.  They arent expected to make a profit next year either.

Answer 6

Usually when there is a sharp sell off coupled with a financial crisis, prices of many stocks never reach back to the highs associated with the peaks.

I can't speak to bank stocks, but from my experience in commodities I can say that "bottoms" are often not where people think they are. History is full of examples where a stock goes down ... and never goes back up.

Which is to say: be careful.

Answer 7

I believe they all have a great chance.