Do you think they are going to post losses and maybe some are going to be fighting bankrupcy againt ilke they did last year? If they aren't going to be fighting bankrupcy then I would imagine the stocks prices would rise so now might be a good time to get into stocks like AIG, BAC, C, and other financial stocks. If the banks do post losses then the stocks price could fall dramatically so it would be a good time to short the stock. What do you think is going to happen?
I had gone long on AIG but recently I have sold all of my AIG because the price of the stock is starting to fall and I do not know what I am up against on the risk side. I want to get back in but I don't want to get back in if next month they are seeking more federal bailout just to stay afloat. I imagine in that case their stock will fall to new lows of less than $7 / share but if they are doing good then they might actually go above $60/share.
What do you think?
BAC just posted third quarter losses in the billions so I am thinking that nearly all financial stocks are going to post losses in the billions also.
