Berkowitz Expects AIG, BOA To Quadruple in 5-7 Years

Top fund manager Bruce Berkowitz says he believes financials like AIG and Bank of America remain the best value opportunities in the market right now, even though they jumped sharply in 2012. Berkowitz tells Bloomberg that he would buy more of BOA if he could, but mutual fund regulations prevent him from doing so. He thinks that as government-sponsored enterprises, like those that involve mortgages, run out, banks and insurers could have a “huge market” of loans to take on, enhancing profits. In a separate video, Berkowitz says he thinks shares of financials like AIG and BOA will quadruple over the next five to seven years, comparing their rebound to the rebound from the commercial real estate crisis in the 1990s.

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