Quote:
Originally Posted by Claeren
That is funny, I guess I am just more of a bear than you...
Commodities will continue to moderate/drop although I don't mind the Encana pick. It is way too soon to be buying into Canadian Banks unless you are an expert IMO, and Bank of America may well have bitten off more than they can chew and only time will tell I guess. Seems like gambling right now more than value investing?
Claeren.
|
Actually I'm a huge bear on the current markets. In fact I hold puts on SPY (The S&P depository receipts). He asked for a long term hold though. Its basically impossible to get the right market timing when buying, so just buy when it seems kinda low, and hold for a few years. He will likely make money.
BAC is a high risk pick, agreed. But if they can weather this storm after getting a steal on Merrill Lynch, they can make a huge dent in market share in both banking and investment. Once this financial crisis is over I could easily see them returning to the 50's, not to mention you are getting an 8% dividend right now. If you are that concerned with risk, buy a 32.50 january 09 put with for every 100 shares and it will at least protect your downside.
With the Canadian banks, i'm not to concerned. I wouldn't buy BMO or CM right now, but TD and BNS seem like safe bets. I actually work for one of these banks.
I might wait a few weeks to buy them though. If you can get TD at $55 and BNS at low 40's, you are getting a steal.
Commodities are never a bad bet with a growing global population, and china and india coming along as economic powers.
Anyways Phaneuthier is young, and the younger you are, the riskier you should be.