The state of Wells Fargo

According to Cramer, anything to do with credit, housing, mortgages and banks should be avoided. Unfortunately I currently own Wells Fargo(WFC). I bought it during it’s 52 week high of $36.43 last year. Ever since then, it’s been hovering around $33 and $36.

I like WFC for a few reasons:

• They increase their dividends every year.
• Their earnings are awesome compared to other banks and is reporetedly diversified enough to avoid being crushed by the current state of the housing, mortgage and credit problems.

WFC recently closed it’s subprime mortgage unit, which really is not a big deal since it represents only “1.6 percent of its $397.6 billion of residential mortgage loans.”

I still think WFC is a good investment. The current mortgage and credit problems is just holding it back and it will only start to move up again after over a year when all the panic has died down.

It is a very long term investment and I fear that I will have to wait another six months before I can unload to avoid any loses. We’ll see how much longer I can wait since the current portfolio I’m bought this for is for shorter term investments and I’ve owned this stock for almost close to a year now.