Citigroup has dropped from $50 to $5 in less than 2 yrs.
If someone had of told you 5 years ago that this company would drop from $50 to $5 you would have thought they were insane.
Say it slowly $50 to $5.
Not $50 to $40
Not $50 to $20
$50 to $5
That is unbelievable.
Same thing for GM,Fannie,Freddie,in fact heaps of companies have seen their share prices absolutely slaughtered.
Could Citi drop from $5 to $3?
They could and you could make a bundle shorting them.
But it is a much greater risk shorting at $5 than $50.
We have had the equivalent of a nuclear explosion in the world share markets over the past year or so and I think Armageddon is priced into these stocks.
The only topic of conversation these days is about the 'financial crisis'.
Thats all anyone talks about.
From a contrarians viewpoint,it is time to go long.
