This represents an American individual making a difference in the economy. Gold has pulled back and the financial sector is still below book value, so value exists in the market. The question of psychology could turn, but economic fundamentals have not changed.
If we get some pro-capitalist moves by the Fed and the administration it could signal a short term bottom in the market decline. However there are a couple serious risks. Hackers targeting banks are one major current risk. Also, there could be a sell off of bank stocks on profit taking that could counter the sentimental impact of this news. The largest risk is that, like Buffets 2008 investments in G.E. and Goldman Sacks, the administration could continue on a misguided Keynesian intervention in the economy boosting barriers to small business creation. Start-up companies need capital loans. The most likely threat is European market problems.
What we need is a freeze on regulations and taxes. We also need Obama to stay on the golf course and away from Washington D.C. Ending the weak horse strategy of the Obama administration would additionally boost confidence and dissuade our enemies.
A small government President has the opportunity to shore up confidence with a supply-side economic strategy and spark an immediate positive economic turn.
The current book value of BofA is around $11, current price is around $7.90