don barrett

WaMu-Whats that smell?

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I have heard investors asking since late 2007 have financials hit a bottom and when should I jump in. I don't think the economy is in near as bad a shape as most think,but I wouldn't buy these financials with your money! Citi seems to have begun to right the ship,but if you listen to most of the prognosticators,you have the other shoes ready to be dropped-credit cards and commercial loans. I think the losses or write-offs are over $200 billion and lay offs at least 50,000 and thats just in the U.S! So,if you want to take a chance on suicide and catch a falling knife,by all means jump in. But,I can think of many other companys that will out perform WaMu and they pay a nice dividend!.
In conclusion I will say that buying a sinking stock and trying to time a market bottom for a stock is very difficult to do. A lot of mutual funds and money managers are going to have a lean year by trying to time time the bottom for these financials.
A lot of great companys are trading at or near a 52 week low and have much less risk than WM. I am a contrarian investor to some degree and I like to find a good company trading at bargain prices,but WaMu and the other financials just have to much risk for me. The wrong move here can haunt you for the entire year!