America Crisis – Q&A: Should I sell my Bank of America stock?
By admin in Crisis FAQ | 28 comments
America Crisis Question by beemo: Should I sell my Bank of America stock?
I 49 yrs old and have about one-fourth of my 401K in BAC stock (shares are valued at around $ 50,000. in total as of today). I am a former Bank of America employee, and got most of my shares for around $ 20. each. Should I hold onto it, hoping that BofA emerges as one of the largest banks after this crisis, or get rid of it after the failure of WaMu, etc?
Best answer:
Answer by Jason M
No way BOA is poised to soar weather they pass the bailout package or not. BOA undervalued their bad debt like mortgages so if they do bailout Wallstreet the value of this bad debt will rise to what the government buys it at. If they some some crazy idea don’t bailout Wallstreet them they really won’t take a loss cause it has already been undervalued in their books.
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Brian | Oct 15, 2011 | Reply
I do not know your entire financial situation, but if your 401k is your only retirement savings, you have too much concentrated in one stock BAC, (remember Enron?). You have the situation of too many eggs in one basket.
Now, the stock could go through the roof and you could be cursing my name, but it could also go down and you could take an huge hit to your only savings. Most financial experts (see links below) would want you to diversify.
You got lucky once, BAC was in the 18′s a short while ago.
John W | Oct 15, 2011 | Reply
Tough question since you can’t explain you entire financial in the space allocated here. A few thoughts:
Tons of volatility in the financial sector right now. The stock’s around $ 36 so you have a nice profit plus good dividend income. I would do one of the following:
Sell some of the shares and realize some of the nice profits that you have. This will also lessen your position which is probably good.
If you want to hold onto the stock, you need to hedge yourself a little. In this case I would buy some shares in the SKF ETF. This is basically a short financial ETF that will go up when the financials go down. It’s very volatile, and you don’t need a 1 to 1 match for the Hedge. Before doing this, research the SKT ETF so that you have a comfort level of how it works before investing.
Good luck. Hope this helps.
Sailon | Oct 15, 2011 | Reply
YES I WOULD UNLOAD IT ! !
ltmikepowell | Oct 15, 2011 | Reply
@jerrett Hope he don’t kill himself when he lost everything. Although expect a very ugly outcome.
xUSAwithoutIsraelx | Oct 15, 2011 | Reply
I have a very easy solution for the problem: stop spending billions and billions of dollars every year on Israel…israel receives as much foreign economic assistance as all the countries combined in the world! thats about 10 BILLION DOLLARS a year… and for what? for killing little palestinian children…
kingfreedom21 | Oct 15, 2011 | Reply
Will a man rob God? Yet ye have robbed me. But ye say, Wherein have we robbed thee? In tithes and offerings. Ye are cursed with a curse: for ye have robbed me , even this whole nation. Bring ye all the tithes into the store house, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will open up the windows of heaven, and pour you out a blessing, that there shall not be room enough to recieve it. Malachi 2:8
luizcadu | Oct 16, 2011 | Reply
The worlwide crisis of the rich countries was not caused by left or right wing policies. It was caused by loss of competitivity for emerging nations like China, India and by the scarcety of cheap oil.
This thing has been happening for more than thirty years, but governments chose to finance the living standards of their people through borrowed money, instead of lowering them.
MsBrittaj | Oct 16, 2011 | Reply
Great video! Worth a blog at britta17wordpress. Thanks for sharing.
Youthrebelion | Oct 16, 2011 | Reply
People watch this and spread it like AIDS never did….At the very start of the “Reagan revolution,” David Stockman exposed the myth that Ronald Reagan and the modern Republican Party are dedicated to small government. watch now…. /watch?v=Lq9NwyQSzhk
DemianHermann | Oct 16, 2011 | Reply
If you are a truth seeker, search “Truth Contest” in Google and click on the 1st result, then open The Present and read what it says. Everyone needs to see this. The Present will turn this world right-side up if it reaches enough people.
pttugasuk | Oct 16, 2011 | Reply
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GOPkicksbutt | Oct 16, 2011 | Reply
As a proud republican I say to Obama-”I dare you to let America default”. The only way for American’s to know how much damage the liberal agenda has done is to crash the ecomomy. There will be no hiding then.
MrCrgl | Oct 16, 2011 | Reply
Should I vote for Palin to end this crisis ?
LiberaLib | Oct 16, 2011 | Reply
@visionvictory because in the wild west days, we were quite a bit like modern-day somalia. and the libertarians are dying to take us back to that, for some inconceivable reason.
visionvictory | Oct 16, 2011 | Reply
@LiberaLib Really? Then why didn’t our nation have an income tax for the first 150 years?
LiberaLib | Oct 16, 2011 | Reply
@visionvictory if thats the way you feel, you should move to somalia. there they have no taxes, and they have no government. you should be happy there. but if you think income tax/having a government is the “same as stealing,” then you’re a radical anarchist who doesn’t believe in the american way of government.
goldenshazy | Oct 16, 2011 | Reply
: USA is going to feel the pain of innocents killed in Iraq, Afghanistan & Palestine. Insha Allah !!
RadarGuidedVermin | Oct 16, 2011 | Reply
@dinohoax That 14 trillion will soon be 20 trillion with Obama at the helm.
dire40272 | Oct 16, 2011 | Reply
Normally, war actually boosts an economy. Not say I’m pro-war, but in the past it has been so. These aren’t normal times. If the Grace Commission Reports were true (and they were) then how would raising or lowering the income tax help or hurt the economy? What we have in D.C. is rich guys arguing over taxing rich guys! Does this make any sense if you really think about it?
TheIxtlan | Oct 16, 2011 | Reply
People worry so much about US debt. I am not worried at all.
No matter what happen, God is in control.
zakaslam1 | Oct 16, 2011 | Reply
yeah ! the debt had nothing to do with 4 trillion war cost or did it ! Or was the war cost under estimated by 4 trillion , so the true number is 8 trillion , little did people Know when they voted a big yes for war on teror they voted for americas DEATH
emuguy2003 | Oct 16, 2011 | Reply
It’s obvious what is going to happen. Greece and Italy both are having ecomonic trouble due to the U.S. Why is that happening you might ask. The U.S. has a thinking unlike the rest of the world. We heavly segragate our neighborhoods as though those neighborhoods are not part of the U.S.
You might ask yourself what will happen. Leaders from around the world will come up with a plan to change America and there social ways along with the business settings through War.
smoke489 | Oct 16, 2011 | Reply
@vlada881 And the worst thing about it, he’s damn right….
smoke489 | Oct 16, 2011 | Reply
@337noname Duhrrr Durr
CalyGamer13 | Oct 16, 2011 | Reply
Were also going to have to crack down on illegals, and when I say illegals I don’t just mean Mexicans I mean people who are living here ILLEGALLY because for every illegal here, that’s another person that’s living tax free.
dinohoax | Oct 16, 2011 | Reply
Folks, we cannot pay. 14 trillion is too much money. Sadly, I saw this one coming.
337noname | Oct 16, 2011 | Reply
@visionvictory As a conservative I perfer to pay off the debt sooner than later. Better to pay it off while we’re still a rich country. I live debt free. Why not my government?
o3mandotcom | Oct 16, 2011 | Reply
Yesterday we were in the house of bounce, but reality is hitting home now. The down jones industrial average is going DOWN, but wait there is more. Ben BEAR-nanke is asking us for more money. Hello, QE3 is coming.