Good time to buy BAC

Financials have trailed the general market by a large margin this year. The U.S. financial sector is down by 2.6% since the beginning of the year, while the S&P 500 is up 9.3%. Some legitimate concerns have been holding financial stocks back this year. It is likely that investors are anticipating that the cycle for investment banking income is at or near its peak. Additionally, problems in sub-prime lending have exposed how lending standards have deteriorated during the good times in recent years.

Of course, not all financial institutions are exposed to these factors to the same extent. As the whole sector has been dragged down in recent months, it could be a good time to look for banks that are not overly dependent on investment banking income and have reasonably conservative lending standards.

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Thank you for visiting my blog. It is a venue for expressing my thoughts and analysis on various financial matters. Although I do not want to limit my scope, I am likely to dedicate the greatest time and space to what I am most familiar with – equities.

It is my hope that readers of this blog will benefit from the ideas and analysis presented in it and I am looking forward to feedback from its readers. Comments on the content will be well received.

Fruitful investing,

Arnbjorn