Posts Tagged ‘C’
Prosperous Times are Ahead for 2010
Bank Stocks Ready to Rise
Bank of America (BAC) and Citigroup (C) are both repaying their TARP funds so they can reward their executives with huge salaries and bonuses. Citigroup made a huge offering this week to sell over $30 billion dollars of common stock. Bank of America already paid off its $45 billion TARP funds with a $19.3 billion equity offering recently. Both stocks trade at lows that we won’t see for a long time. Citigroup went as low as $3.20 recently this week and Bank of America reached a low it set in July at $15. These prices are valid bargains and with the amount of money the FED is creating you can bet these stocks will go up as inflation-protected stocks. They also will continue to make more revenue as they release more loans out which the government is encouraging to help create more businesses and jobs.
Is it time to put our money back in?
Dow Jones moves up +379.44 to a magnificent 6,926 points. This is an absurdly high increase in the DOW. Two reasons are a big boost in Citi (C) and Bank of America (BAC) which are both part of the DOW top 20. A profit report from the bank is huge, expect many more green things to be happening from stocks. Short sellers will start getting more money out as they are seeing the bottom of the Dow. However, this is not the bottom yet! We haven’t hit below 6,500. Once the stock prices hit below this mark, it will be a great time to start getting in the market and investing again. I see the big boost as just a starting point of good things to happen, but don’t expect any big gains for at least another year. We will see many more hills that look like ‘the rally’, but don’t be fooled. We have a lot of rich people with tons of money that can manipulate the market every way they feel fit. If you know how to play the short-term, you could probably make some dough selling on highs and buying on bottoms.




