In Bank of America, though, there seems to be reason to follow the great one's example. As of 1:00 PM (Central Time) on 9/18/07, BAC, one of the nation's strongest financial corporations, was selling for just under $50 a share, had a dividend of over 5% (with a dividend payout ratio safely below 0.5), and had a P/E of only about 10. Both its PEG and Price to Book Value ratios were reasonable to below average.
Even with as apparently secure a company as this, however, one may be well advised to proceed with caution, investing a little at first and following with periodic investments in the months ahead. After all, the stock market can sometimes depress with irrational panic at least as much as it brings joy in periods of "irrational exuberance."
It seems unlikely the Wall Street concerns over subprime lending, reduced overall credit, poor real estate markets, consumer worries, or the next recession will end with simply one or two Federal Reserve rate cuts. Then too, there are major wildcards out there that could affect equities, like the possibility of war with Iran, a collapse of the current Iraqi government, a big further fall in the value of the dollar, or a new terrorist attack on our shores, to mention a few.