Just The Facts

WaMu: Speculative Value Play

I agree with the previous poster that said fortunes are to be made now in our financials. Diversification is key, as always. Basically, I view it as a bet on whether or not America survives. I've decided to bet a little of my money on America.


As the nation's largest thrift, WM is on my "buy" list. And especially so, at 10 cents on the year-ago dollar. To protect against individual failures, I'm spreading my investment over quite a few financials that are now available for 5 to 10 cents on the dollar. If they ALL fail, then any equity investment is worthless and nothing will matter anyways. But if our financial system recovers and our nation survives, then this is a "once-in-a-lifetime" opportunity for the average investor to get rich. Each surviving business will pay out 3 to 5 times as was lost on each business that went under. Short a total collapse of our entire system, this is a "no brainer" investment!


Of course, I think shorting opportunities still exist today in our financials. They could be played as a "hedge" against financial Armageddon, if one were so inclined. Just look for names trading at MORE than 10 cents on the year-ago dollar. And the higher, the better!


:)