Is now the time to get into financial stocks?

Question

Are National City Bank and/or Citibank a good pick for a stock?

Answer 1

Very hard and nearly impossible to say. My father (he is very knowledgable about stocks) thinks it's almost time, but who knows. As for me, Im sticking with what I know best, retail. Im talking about companies like Apple (AAPL), Dick's Sporting Goods (DKS), and Game Stop (GME).

Good luck trying to catch a falling knife.

Answer 2

This is a question that is currently on a lot of investors' minds. The answer is certainly not obvious. Many of these banks made major screw ups. Citi being one. The down draft has effected pretty much all financial institutions. The big problem is which were not deservingly effected and which were. The problem actually might be deeper than that. Will this problem send the U S into a major recession? Many including myself think that it very well might.

Here is another problem. A lot of people I suspect are walking away from their home loans not because they can't afford to make the payments but because they decided to give the overpriced home back to the bank. In other words why pay a $600,000 mortgage on a home now worth $500,000. Let the bank deal with it. Things can get much worse before they get better.

Answer 3

WHAT!!!!!!!!!????????
What tool said single stocks are rarely a good idea. Dumb@$$!! I'm at 144% year to date growth...and I haven't even made 5 transactions this year. Screw Mutual Funds, thats for people who are just too stupid to read the newspaper and watch CNBC.
As for the question:
I would say it is still too early to look into Financials BUT, I do like Citibank. If you are looking at getting into it, I would probably do it Monday...since the Fed is due to speak on Tuesday and if they lower rates there will be a brief spike from Citi. Moreover, I would only go in 1/4 of your projected goal right now. Then, wait til after the Holidays to see how the holiday reports come out. If its a mediocre season, you would be better off picking up another 1/4 of you goal. Then, look to Feb/Mar, because earnings season will be approaching and the spending season will be over and that is where you will see what is happening with better clarity. If you are anticipating negative news to come up in the Mar/Apr earnings season than wait til then make their report to finalize your position. If your research tells you it is looking to be a good season for them, than fill your position before they report earnings.
I love it when people tell you to diversify but they really don't know what that means or the different things to diversify against.

Answer 4

Jim Cramer is now saying to get into the financials, for what it's worth. I'm a little bit leery on that one though. There are so many other sectors that you don't have to worry about big problems coming out, I'd rather play those.

However, if you were to buy a bank stock, I'd recommend what one of the guys before me said and only put 1/4 of your position on at first, just in case you're early. That's a very good way to invest!

I'm not a fan of Citi as they seem to be more tied up in the subprime mess than just about anyone else. Nat. City Bank I'm not familiar with.

Good luck!

Answer 5

In my opinion those banks both had heave exposure to the sub prime market especially Citibank. I think there is still some downside to both of them, but I do think there are other financial stocks that are worth looking at them. Bank of America, US Bank and Wells Fargo but be careful with Wells Fargo they are showing some signs of weakening.

Answer 6

given which you purely have $600...i'd say choose for BAC so which you are able to purchase extra shares. yet as Madoff is say...we are interior the direction of a Bull in a bear...in case you're fairly going for long-term...consistent with threat wait til after earnings come out....the marketplace could drop bypass into opposite... yet once you're truly helpful that our economic equipment is recuperating and we are only going up and up...then purchase now.... in case you have no longer have been given a brokerage account yet, evaluate Scottrade. My pals and that i are utilising Scottrade. Scottrade. NO account maintenance, provider, or state of being inactive expenses. $7.00 on line figuring out to purchase and advertising value for inventory over $a million.00 a proportion. educational and webcast available to shoppers. stunning figuring out to purchase and advertising structures (very consumer friendly). stunning shopper help (398 branch places of work national). $500.00 minimum to open an account. in case you do finally end up establishing it with Scottrade, use this referral code: EJVR8926 You and that i will get 3 loose trades.

Answer 7

Single stocks are rarely a good idea. Especially if you know nothing about stocks.

You should invest in quality mutual funds with proven track records. A mix of small, mid, and large cap stock funds is a good idea. You should also have some international in our mix.

Answer 8

Citigroup will go back up in time but subprim is not over yet...wait until Spring 08

Answer 9

It's always a good time to get into the market. There is always money to be made. Don't follow the herd. Get yourself a good advisor and tell him/her your goals.
PS - I HATE mutual funds.
http://www.better-sales-and-selling.com/index.html

Answer 10

If you are asking this question, the answer is a resounding NO!

Unless you know what you're doing, diversify. And if you know what you're doing, you shouldn't be asking us.