Should u Buy Bank Stocks ?

AFTER A RECORD-SETTING RALLY LAST Wednesday, the brutal selloff in financial stocks -- the worst for any major industry group since the technology bubble burst in 2000 -- could be over.

Many financial companies face additional loan losses and credit-related write-downs in the coming quarters, particularly if the economy stays weak into 2009. Yet a slew of earnings reports last week from marquee banks like Wells Fargo and JPMorgan Chase suggests that most financial companies have sufficient earning power to offset a rising tide of bad loans and should be able to absorb further write-downs without having to seek significant amounts of additional capital.

Financial stocks in the Standard & Poor's 500 index are down 29% this year and off 43% in the past 12 months, even after a record-setting 13% gain Wednesday and a 6% rise Thursday. The group was up slightly Friday. Financials are the worst-performing group this year in the S&P, which is off 14%. And they've risen just 10% since the most recent bull market began in October 2002, against a 62% advance by the index. Financials are down to 14% of the S&P 500 from a high of 23% in late 2006 as more than $1 trillion of market value has vaporized, in part because of huge declines in such former mega-stocks as Citigroup (ticker: C) and American International Group (AIG).

I would buy companies like BAC,Citigroup ( C ) , American Express & Wells Fargo w/ caution , Buy the stocks in stages like 25% of your holdings now , and if the stock dips down another 10 % - 20 % put your next 50 % into the stock ! this is a long term hold not a short term Play , so if u have the stomach for a bumpy ride u can make some good money in the long term !!