Financials are almost as low as their 52-week lows, so is this a time to stay away from them or a time to buy them? Investing in financial stocks right now may seem scary for some of you. That is why I want to reiterate the same type of thinking I expressed over a month ago in Financials Maimed, Pick 'Em Cheap.



Although we hear so much bad news from every news source out there, investing in the stock market right now could could be one of the best investments you make. Once we pull out of this recession, valuations are going to go back up and beyond what they were before. These low priced stocks will not stay forever. Take this piece of investing advice as a 3-5 year path to great wealth. If you heavily invest in stocks, especially financials, right now; you will become much richer than you are today.



Some of the best stock picks for the financial sector are:

• Citigroup (C)- one of the most beaten down, highest potential for returns. Today priced around $20-21, in three years could be priced at $60-80!
• Merrill Lynch (MER)- with a stock that almost hit $100 a year ago, $36 is not a bad price at all. The stock can easily double once they cleanse their hands of all bad debt.
• Bank of America (BAC)- one of the strongest banks in the sector. They had much smaller subprime losses than most banks, but the price has dragged down alongside the rest of financials
• JP Morgan (JPM) and Goldman Sachs (GS)- these two stocks have not gotten hit as hard as other financials because they made smarter investments, and they are the cream of the crop. Goldman is probably the best investment bank in the world, whereas JP Morgan received the special blessing of financial backing from the Federal Reserve. Bottom line: safer, strong investments, with good earning potential, but not as high as more risky bank stocks.

As with any investing idea, investing strategy, or investing tips; do your own research on these companies and the stock market. The best stock market investing advice I can give you is: If you are going to invest in any strategy, stick with it, don't deviate or let emotions get in the way, and it will make you a lot of money.
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