Quote:
Originally Posted by Souss  Actually Citigroup would have most likely gone bankrupt had it not received $7.5B funding from the Abu Dhabi Investment Authority.
I would avoid the banking sector for the next 6-12 months. It is probable that more subprime-related write-downs are going to happen over the next few quarters, and their magnitude is still very uncertain. |
I agree.
But I think the best way to maximize the likelihood of making profit is not to look for a bottom because you'll certainly miss it. Big investors will know before you and before you buy, the price would have gone up significantly.
Here's the interesting question: do you think current levels are good enough for a 2-3 year investment? i.e. if one is willing to tolerate temporary losses (lets say a 2-3 year investment with losses over the first year where of course you keep the stocks).
What is happening is a cycle and sooner or later recovery will happen.