Prior to the last couple of trading days, Bank of America (BAC) had slumped all the way to $13. The large financial dropped from $17.50 to $13.00 in a relatively straight line on market fears of another financial crisis. My previous post highlighted how the market has taken to the "bear market" fear at a rate equivalent to the financial crisis though a repeat is all but impossible due to leverage restrictions. Due to this collapse in BoA, noted bear Mike Mayo actually upgraded the stock last week to Outperform from Sell. The long-time bear had the following statement regarding the large bank that backs up my theory on the sector: "...we are more positive on large US banks given recession prices without a recession." The main thesis remains that BoA can actually grow tangible book value during a recession that assumes 3x the current loan losses. With the stock heading towards an estimated book value of $17 by year end, buying the stock remains a no brainer even after the recent rally to $14.15. My favorite financial remains Citigroup (C), but at these valuations investors should load up on both stocks early and often. Disclosure: Long C