I see stories of stocks like Citibank ($5) at their 13 year lows and wonder if it would be profitable to invest a couple thousand dollars over a 2-3 year period. Any other Big name company stocks would be targets too. Thanks.
I should have been more specific…by long term I actually meant about 3 years when I would like to take the money out for other purposes…maybe that is more medium term.
It is said that banks will bounce back some once things start to clear up, mainly home prices hit a bottom so we can more accurately value the mortgages.
That is, for the banks that survive.
But part of the problem was that the financial institutions were overleveraged. That was big risk but also bigger profits. They won’t be able to do that in the future and also need to collect more cash for lending. So their profits going forward won’t be as high before in the last 8 years.
I can’t see where they are a great investment at this time even for a 3 year period. A short term trade when things change, maybe, if you time it right, but not for 3 years out.
JMHO