Today, shares of Citibank closed at $2.80. A year ago, the stock was trading at about $26. Two years ago, it was trading at over $50, and had been for the previous two or three years. Here’s what this means in simple, everyday terms:
- Assume that, last year at this time, you had $5000 burning a hole in your pocket.
- Assume that you bought 100 shares of Citibank stock (about $2500).
- And you also bought a year’s supply for four people of Diet Coke (500 12 packs) (also about $2500).
- Further assume that you and your friends drank all that Diet Coke.
- Today, when you went to redeem all those empty cans, you would have more money in empty cans ($300) than you would in Citi stock ($280).
The same would be true for bank of America, but only if you lived in Maine MIchigan ($.10).