If you can weather the short term volatility in the markets, BofA looks very attractive here:

The reason for why Bank of America has dropped so low is because of how uncertain everything is and all the negativity. I believe has huge upside potential here.

1. There is the rumor that President Obama wants to nationalize the banks. Americans don’t want this. Obama has actually laughed at the idea when he said on an ABC interview, “Sweden had like five banks. We’ve got thousands of banks…managing and overseeing anything of that scale…wouldn’t make sense.

And we also have different traditions in this country.” President Obama understands that the stock market can determine his success this year. I don’t think he wants to kill off the current shareholders and take Bank of America off the market.

2) Bank of America is committed to repaying taxpayers. They paid back $402 million in a TARP dividend payment to the U.S. government. The CEO has also mentioned that they will not be borrowing any more funds.

3) During the next six months, the Fed will be purchasing $500 billion of mortgage backed securities. I believe the Fed is going to be very nice to Bank of America in this repurchase considering that Bank of America purchased Merrill Lynch when they had second thoughts and the Fed and the Treasury requested they go through with it.

4) Merrill Lynch is the largest retail brokerage, Countrywide is the largest mortgage lender, and Bank of America has been profitable for almost two decades. This is why I think Bank of America will be a leader in our new economy.

5) There is a lot of insider buying going on.