Chasing Value: Are you watching WaMu?

Filed under: Washington Mutual (WM), Bargain stocks, Chasing Value, Stocks to Buy

For several years I held Washington Mutual (NYSE: WM) stock, happy with some slow growth and a very sizable dividend yield. It was so stable for so long that I and others included it in our 'safe havens' selections. This eventually turned into a disaster with the collapse of the financial sector and WaMu along with it.

There is quite a lot of debate as to whether it is time to get back into financial stocks or if we are in for years of more torment in the sector. The bad news and write-downs certainly have not abated recently.

My colleague Zac Bissonnette posted Value investors leap out of financials: sign of a bottom? raising the issue of capitulation by those who might have been hanging on to a shred of hope for a turn around. Now they are taking their losses. Perhaps they will take advantage of the 30-day rule and get back in next month after booking the losses.

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