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So, my father-in-law sold all his financial stocks.

IHateMyJob2004

IHateMyJob2004

Lifer
Any investors here know now is the time to buy the beaten down financials that are good. My father in law blindly sold all of his.

It's sad. I almost know for a fact that his broker called him and "advised" him. How sad.

It kinda pisses me off to, because I know more about investing than his "broker" and he combined times ten.
 
You're going to love having all your stocks when you're trying to cook pork n beans in a can, over an open fire... Invest in REAL things. Not paper or electronic 1s and 0s.
 
I'm not sure who it was but someone got real nasty with me back in November when I questioned him on financials hitting bottom. He claimed that they are beaten down and they were bargains. Fast forward a few months and they have lost more ground. Don't be so sure that its time to buy anything right now...
 
Originally posted by: BarneyFife
I'm not sure who it was but someone got real nasty with me back in November when I questioned him on financials hitting bottom. He claimed that they are beaten down and they were bargains. Fast forward a few months and they have lost more ground. Don't be so sure that its time to buy anything right now...
Click to expand...

All one can do is value stocks. What Mr Market does in the short term is anyones guess.

I bet you your friend will be proven right 5 years from now using his cost basis from 2 months ago.

This isn't like the tech crash when the stocks were already grossly overvalued. Financial stocks were already "on sale" prior to the recent fall.
 
Certainly agree with the way the US financials are going but if you want to take a risk the dividend payout is great. Cdn financials were hit as well but nothing compared to the US.
 
i bet the broker made a lot on the commissions

But what if he had sold it last year when the Dow Jones was at an all time high?

 
Originally posted by: IHateMyJob2004
Any investors here know now is the time to buy the beaten down financials that are good. My father in law blindly sold all of his.

It's sad. I almost know for a fact that his broker called him and "advised" him. How sad.

It kinda pisses me off to, because I know more about investing than his "broker" and he combined times ten.
Click to expand...

wow that's pretty bad. way to buy high and sell low.
 
I just heavily (30% of equity assets) invested in a few value financial ETFs. IXG being one of them. I am holding ~5% in ETFC alone and am betting it is back to ~15 by early 09. I like some of the financials right now but there are a few out there that I wouldnt touch with a 10ft pole.

Its sad that there are people out there that are so reliant on brokers and their advice that they make moves like that. If you dont know what youre doing read a book on mutual funds/EFTs and put your money in a few of those.
 
You don't know his time frame. It could be a good move depending on his circumstances and finance. I wouldn't blindly judge.
 
Originally posted by: IHateMyJob2004
Any investors here know now is the time to buy the beaten down financials that are good. My father in law blindly sold all of his.

It's sad. I almost know for a fact that his broker called him and "advised" him. How sad.

It kinda pisses me off to, because I know more about investing than his "broker" and he combined times ten.
Click to expand...

If he owned crappy financials, then his broker did him a favor selling him out. If his broker sold him out of a best-of-breed like GS, then you're right, your dad got hosed.
 
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
 
Originally posted by: tranceport
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
Click to expand...

lol, enjoy the bomb shelter. Gold is nothing more than a shiny rock, if a nuke war happens it won't be worth dick because it has no real use other than ornamental, without industrial uses. So your "hard asset" is nothing more than market-driven priced rocks. Wow, good job at "investing" in something that really has no value at all.

Now bullets, I would agree with you there, and land in a year or two.

It could have been a good or bad decision, who knows.

Personally, once Citibank hits 20, I am buying a shit-ton of it. I am getting into financials while the suckers are exiting. Even if I lose some, the long-term horizon is awesome right now.
 
Originally posted by: IHateMyJob2004
Originally posted by: BarneyFife
I'm not sure who it was but someone got real nasty with me back in November when I questioned him on financials hitting bottom. He claimed that they are beaten down and they were bargains. Fast forward a few months and they have lost more ground. Don't be so sure that its time to buy anything right now...
Click to expand...

All one can do is value stocks. What Mr Market does in the short term is anyones guess.

I bet you your friend will be proven right 5 years from now using his cost basis from 2 months ago.

This isn't like the tech crash when the stocks were already grossly overvalued. Financial stocks were already "on sale" prior to the recent fall.
Click to expand...

Hey heY!! another value investor eh? Did you read intelligent investor?

Seth Klarman's "Margin of Safety" is another great book. Must read!
 
Originally posted by: LegendKiller
Originally posted by: tranceport
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
Click to expand...

lol, enjoy the bomb shelter. Gold is nothing more than a shiny rock, if a nuke war happens it won't be worth dick because it has no real use other than ornamental, without industrial uses. So your "hard asset" is nothing more than market-driven priced rocks. Wow, good job at "investing" in something that really has no value at all.

Now bullets, I would agree with you there, and land in a year or two.

It could have been a good or bad decision, who knows.

Personally, once Citibank hits 20, I am buying a shit-ton of it. I am getting into financials while the suckers are exiting. Even if I lose some, the long-term horizon is awesome right now.
Click to expand...

I'm not sure C would be my pick - it has a lot of problems both structural and cultural that I don't think will be addressed anytime in the next 5-10 years.
 
Originally posted by: glenn1
Originally posted by: LegendKiller
Originally posted by: tranceport
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
Click to expand...

lol, enjoy the bomb shelter. Gold is nothing more than a shiny rock, if a nuke war happens it won't be worth dick because it has no real use other than ornamental, without industrial uses. So your "hard asset" is nothing more than market-driven priced rocks. Wow, good job at "investing" in something that really has no value at all.

Now bullets, I would agree with you there, and land in a year or two.

It could have been a good or bad decision, who knows.

Personally, once Citibank hits 20, I am buying a shit-ton of it. I am getting into financials while the suckers are exiting. Even if I lose some, the long-term horizon is awesome right now.
Click to expand...

I'm not sure C would be my pick - it has a lot of problems both structural and cultural that I don't think will be addressed anytime in the next 5-10 years.
Click to expand...

C at 20? It's worth more than that. What people don't realize is that the *only* reason why financials are suppressed is because idiotic "hold for sale" mark to markets, which are only suppressed due to liquidity, not credit quality. A huge portion of the write-downs occuring now will be re-recognized as revenue in the coming years. This is only a transitory issue.

That's why you see the sovereign funds pushing into banks. They know that they will go back up and they are getting in while it's cheap.

Citi has massive upside certainty in 5-10 years. Their "internal" issues aren't as bad as many make it out to be, you'll see them work through whatever issues they may have and come out much stronger. It's all cyclical.
 
Originally posted by: LegendKiller
Originally posted by: glenn1
Originally posted by: LegendKiller
Originally posted by: tranceport
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
Click to expand...

lol, enjoy the bomb shelter. Gold is nothing more than a shiny rock, if a nuke war happens it won't be worth dick because it has no real use other than ornamental, without industrial uses. So your "hard asset" is nothing more than market-driven priced rocks. Wow, good job at "investing" in something that really has no value at all.

Now bullets, I would agree with you there, and land in a year or two.

It could have been a good or bad decision, who knows.

Personally, once Citibank hits 20, I am buying a shit-ton of it. I am getting into financials while the suckers are exiting. Even if I lose some, the long-term horizon is awesome right now.
Click to expand...

I'm not sure C would be my pick - it has a lot of problems both structural and cultural that I don't think will be addressed anytime in the next 5-10 years.
Click to expand...

C at 20? It's worth more than that. What people don't realize is that the *only* reason why financials are suppressed is because idiotic "hold for sale" mark to markets, which are only suppressed due to liquidity, not credit quality. A huge portion of the write-downs occuring now will be re-recognized as revenue in the coming years. This is only a transitory issue.

That's why you see the sovereign funds pushing into banks. They know that they will go back up and they are getting in while it's cheap.

Citi has massive upside certainty in 5-10 years. Their "internal" issues aren't as bad as many make it out to be, you'll see them work through whatever issues they may have and come out much stronger. It's all cyclical.
Click to expand...

If C drops another 20% to hit your target price of 20, you do realize that would be its 10-year low?

I don't see why you'd pick damaged goods, when in the same market you could get far superior shares - heck, you could buy world-beaters like GS, CME, NMR. Even if you *had* to stay in the money-center bank sector, JPM is a much better pick than C, and AIB kicks its ass.
 
Originally posted by: glenn1
Originally posted by: LegendKiller
Originally posted by: glenn1
Originally posted by: LegendKiller
Originally posted by: tranceport
Originally posted by: IHateMyJob2004
randalee,

What the hell are you talking about?
Click to expand...

GOLD!

God knows when the mushroom cloud clears GOLD will still have all of its value.. And then some!



I personally invest in bullets. I can get what I need with those...
Click to expand...

lol, enjoy the bomb shelter. Gold is nothing more than a shiny rock, if a nuke war happens it won't be worth dick because it has no real use other than ornamental, without industrial uses. So your "hard asset" is nothing more than market-driven priced rocks. Wow, good job at "investing" in something that really has no value at all.

Now bullets, I would agree with you there, and land in a year or two.

It could have been a good or bad decision, who knows.

Personally, once Citibank hits 20, I am buying a shit-ton of it. I am getting into financials while the suckers are exiting. Even if I lose some, the long-term horizon is awesome right now.
Click to expand...

I'm not sure C would be my pick - it has a lot of problems both structural and cultural that I don't think will be addressed anytime in the next 5-10 years.
Click to expand...

C at 20? It's worth more than that. What people don't realize is that the *only* reason why financials are suppressed is because idiotic "hold for sale" mark to markets, which are only suppressed due to liquidity, not credit quality. A huge portion of the write-downs occuring now will be re-recognized as revenue in the coming years. This is only a transitory issue.

That's why you see the sovereign funds pushing into banks. They know that they will go back up and they are getting in while it's cheap.

Citi has massive upside certainty in 5-10 years. Their "internal" issues aren't as bad as many make it out to be, you'll see them work through whatever issues they may have and come out much stronger. It's all cyclical.
Click to expand...

If C drops another 20% to hit your target price of 20, you do realize that would be its 10-year low?

I don't see why you'd pick damaged goods, when in the same market you could get far superior shares - heck, you could buy world-beaters like GS, CME, NMR. Even if you *had* to stay in the money-center bank sector, JPM is a much better pick than C, and AIB kicks its ass.
Click to expand...

So what if it's the 10-year low? That's the point of me highlighting C, people are pushing it down not because it's long-term prospects are poor, but because they are fleeing from a brushfire like it is a conflagration. Would Citi go under? I highly doubt it will. In 5 years it will probably have re-recognized 30-40% of the written-off portion, if not much more, which will push its stock price back up. I don't think things are over for C and I do think it'll hit 20.

Did I say I was going to go all-in with C? No, I said I would buy into it at that point. I am not going to shove all of my money into one stock and I will certainly pick up the others that you mentioned for diversification.

My whole point was that there are some good values out there and people are running away when they should be getting in. They may not enter at the most optimum point, but it's getting pretty cheap.

I do know that GS is trying to lay off exposure, as I have gotten 2 calls from some of their guys looking to sell stuff. What does that mean? Who knows, but some speculate their exposure could be more than they are letting on.

 
Originally posted by: glenn1
Originally posted by: LegendKiller
Originally posted by: glenn1
I'm not sure C would be my pick - it has a lot of problems both structural and cultural that I don't think will be addressed anytime in the next 5-10 years.
Click to expand...

C at 20? It's worth more than that. What people don't realize is that the *only* reason why financials are suppressed is because idiotic "hold for sale" mark to markets, which are only suppressed due to liquidity, not credit quality. A huge portion of the write-downs occuring now will be re-recognized as revenue in the coming years. This is only a transitory issue.

That's why you see the sovereign funds pushing into banks. They know that they will go back up and they are getting in while it's cheap.

Citi has massive upside certainty in 5-10 years. Their "internal" issues aren't as bad as many make it out to be, you'll see them work through whatever issues they may have and come out much stronger. It's all cyclical.
Click to expand...

If C drops another 20% to hit your target price of 20, you do realize that would be its 10-year low?

I don't see why you'd pick damaged goods, when in the same market you could get far superior shares - heck, you could buy world-beaters like GS, CME, NMR. Even if you *had* to stay in the money-center bank sector, JPM is a much better pick than C, and AIB kicks its ass.
Click to expand...

Thank God i sold C in late Dec. but Should have sold much sooner 🙁
 
He probby needs to make payments on his house and credit card bills.

The economy is completely fvcked.. Selling a stock shouldn't be questioned - except tech stocks.. They're gonna kick ass again.. I'm telling ya.
 
You're assuming stocks have hit the bottom and are about to go back up. From everything I've read, that is unlikely.

Silver is a good investment right now, its value is increasing much faster than gold and platinum (which broke $2000/ounce not that long ago).
 
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