I am a BAC owner and have owned for over 30 years... $Bank of America(BAC)$

I bought and sold around the dividend in the 90s and early 00s. I then became a buy and hold investor..

From my time watching the banking sector and any sector... I ask myself whether I think there is a greater likelyhood that BAC will go to $20 or to $40...

Right now, I think there is greater likelyhood that BAC will go to $20 than to $40.

So I am sitting this out for awhile. My concern is that the Fed will continue to raise the Federal Funds rate.

The unrealized losses are related to the federal funds rate. If the rates stay this high or increase, the losses will be realized over the life of the bank's poor investment.

My reason for thinking this is because as people realize that they can receive 4% - 5% return on their cash, the bank will be forced to raise their rates to this amount to retain the cash.

Let's face it loaning money at 3% and paying money at 5% is not good for banks. If a recession comes and people begin to default on their loans at a greater rate... this will also increase the losses for the banks.

Because of these two head winds... I am in a wait and see mode. I have filled about 30% of my planned position in BAC and will potentially add in the future...when things become more clear...

Right now... I think it is too early to buy unless you are starting a position with 25% of your planned investment amount. If you trade... do what you want...

I have no idea what will happen from day to day or week to week...