I'd weigh in but Creeper Coug will either delete or alter my post. Good luck the rest of the way.
Last year I sold my airlines stocks at a massive loss and rolled into banks (BAC, C, and JPM) mostly in my IRAs.If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.That said, the short-term upside opportunity in banks is low.
Last year I sold my airlines stocks at a massive loss and rolled into banks (BAC, C, and JPM) mostly in my IRAs.If you hold banks in a taxable account, I'd hold or trim a small portion. If you owned less than a year you're going to have to achieve a 28% higher gain on your next investment to break even.Ive pared 5% of my BAC and am holding on Citi which I think has room to run. Currently, Citi trades at 8x next years earnings and the banks are sitting on massive sums they can deploy once the govt. releases the moratorium on share buybacks and dividend increases.I talked with a senior exec with Columbia last week who reported they've seen very few delinquencies as a percentage related to Covid. Even residential landlords not receiving rent are keeping current.That said, the short-term upside opportunity in banks is low. C book value is somewhere between 70-80 I believe. They have had a string of CEO's last 20 years that have had difficulty moving the stock vs. other banks and rest of market. Maybe the new one has the magic touch. To say they have alot of moving pieces to try and manage is a understatement.Gov't is supposed to release the moratorium on buy backs and dividend increases in June. Events like those have generally produced after hour pops in the stocks, and a bump the next day in the market, but week later my experience shows them closer to back where they were trading b4 the announcement.You trading in your IRA to avoid Capital Gains is a Genius move. Great idea.