Will the Financial Sector Rebound Again?

Financial sector has tumbled once again in this post-subprime-mess era. What I'm wondering right now is whether it will make another come back after the Fed meeting on October 31st. It has rallied after the discount rate was cut in August and kept going up even faster after the Fed has cut the prime rate by 50 basis points at the September 18th meeting.

Fed is widely expected to cut the interest rate again at the next Fed meeting on October 31st. Although this time it will probably be cut by 25 basis points. Will the cut motivate the markets to surge ahead despite the deep problems a number of large financial firms face? Will the 25 basis points cut be enough? I don't know and I doubt anybody else knows either. But no matter which way the market will go, further development will definitely be interesting to watch.


One company I've been watching is Bank of America (BAC). It has a very solid business model, robust earnings, and is the only truly nationwide bank in the U.S. I'm wondering how low the stock will go, but, as we all know, trying to time the market and trying to get the lowest bargain price before the stock rebounds is more of a gamble than a prudent investing strategy. Either way, I'd prefer to wait out and get in at the beginning of an uptrend than at the end of a downtrend.