January 14th, 2012 10:33 PM by Eric Fang
I did invest a lot on financial stocks. Lots of peopleasked which stock to own, BAC or WFC.
Basically those are two different kind of investment.WFC should survive with good performance, this will be a long term hold. If you want to invest in BAC,you should understand that there are lots of uncertaintyfor this stock, so much risk, but as long as this bank can survive, the return will be better than WFC.So it dedends on your investment strategy and your longterm goal.
This reminds me the questions my clients asked me all the time: should I choose 5/1 ARM or 30 yr fixed?If this client has lots of properties, sometime I can advisethem to have some ARM, some fixed. But for most other people, I could not recommend much because I don't knowtheir goal and the risk tolerance levels.
And I told them that I am a conservative guy, so that's whyI choose longer term program myself.
Since last year, I started to have blogs mention that therates near the bottoms, especially with the recent G-Feesfrom the Fannie Mae and Freddie Mac. But overall, the ratesis still not bad at all.