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.