BOA has sunk even further, and I am deep in the red. Should I cut loss? Not if I follow the advice of this article, about "reversion to the mean for the downtrodden", meaning that what goes down must come back up.
Also, a recent article on why we should be buying Bank of America.
And finally, Bruce Berkowitz has reckoned that the recent sell-off in financial stocks is just based on "yesterday's news". He has the mean reputation of buying stocks on the cheap and then making lots of money selling them later. His portfolio is now heavily weighed towards financials.
Now that BOA has tanked, what will be my strategy? I will be seeking to open a second position once it falls to around 10 dollars. I do believe in averaging down, especially in the case of BOA.
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