I am completely out of the US markets. Been slowly tracking the Nasdaq and NYSE for a few select choices to buy in 2009 or 2010. With how badly my portfolio got hit in 2008, I wonder if I should take an uber-conservative path or a super-risky one. I am leaning towards getting the biggest bang for my buck and investing in some of the battered financial institutions. For now, I like the idea of buying into Citigroup (C). Here's why:
1) Credit card operations will recover eventually,
2) HNW individuals will always need to put their money somewhere (post-Bernie, no person in his/her right mind will blindly place their money with stupid/corrupt/ass-like hedge funds),
3) Board of Directors will eventually replace the entire executive management team and then, resign themselves (with new leadership) the company will come back hard,
4) Rich Saudi money will not allow the company to fail (too much international pressure on the White House to let that happen), and
5) Citi's Japanese operations is the wildcard (perform well and you have a ten-bagger).
Will Citigroup recover to its previous highs, I don't know. But, I do believe it will come back nonetheless.
(Disclaimer: I do not own any shares in Citigroup.)
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