"The future of security prices are never predictable" - by Benjamin Graham

I am in the process of reading a book from Benjamin Graham. From the current volatile market in US, it looks like there are many good opportunities out there. The Wall Street people are worry about the US economy trigger by sub prime mortgage crisis and high inflation.

I have been monitoring specially Bank of America for the last few years, the price has been fallen to around $30 dollars now. It even drop to around $18 a few weeks ago. If you buy it at around $20, it will give you a dividend yield of about 12% annually, which is very attractive compare to other investment tools, and you can potentially get a 100% capital gain a few years later.

The problem right now is that, you never know how US economy will go, will it recover? In this point of time, a value investor should always look at the foundation of investment. As Graham said, you never know where the market will go, and thus the price is not predictable in the short term.

Given the fundamental analysis of the bank, I can only say that some companies in US are put out on sales. Always remember "Buy when the market is down, Sell when the market is high". However, the fundamental analysis needs to be done in order to measure if the price is really 'low' to go in.

Given the current market condition, you can go in the market with a big margin of safety which reduce the risk of making wrong decision. So, go and do your homework and you should get good ROI a few years down the road from the US market.