A good time to buy banks stocks?

This is a discussion on A good time to buy banks stocks? within the General Trading Chat forums, part of the Reception category; Originally Posted by platnum525 breadman any suggestions on the high interest accounts Best Interest bearing accounts I found. I would ...

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Old Mar 18, 2008, 9:48pm   #31
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Originally Posted by platnum525 View Post
breadman any suggestions on the high interest accounts
Best Interest bearing accounts I found. I would recommend switching your bank to
www.everbank.com
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Old Mar 18, 2008, 10:02pm   #32
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Originally Posted by breadman View Post
platnum525,

Do you live in America, if so I don't know anything about American banks and the interest rates they pay. As the base rate in America is now 2.25% I guess the rates are low.
Do you hold the money in US dollars, if so you may want to think about transferring it into another currency. The Euro, Australian Dollar or Gold come to mind although I would not do it now as the US Dollar could have a bit of a bounce.
Do you want to invest for 6 months 1 year 2 years or longer.
It's very hard to give someone advise without knowing their financial position, and even then what I tell you could be wrong.
i live in america, 1 year would be fine
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Old Mar 18, 2008, 11:42pm   #33
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platnum525,
All I can really say is that their is nothing that I wish to buy or sell today and hold for a year. I buy and sell all the time but never hold anything for a long time. I am not qualified to give anyone financial advise and their is no reason for you to listen to what I tell you anyway. The best advise I can give you is to educate yourself in the financial markets so you have a better understanding of what is going on, this will take time.
Pay of your mortgage if you have one and any credit card bills before you invest.
Do not put all you money in one product, 50K can go into 10 to 15 different positions.
You can be in the right trade but at the wrong time, timing of trades is important.
The people who loose the least in a recession/bear market are the winners.
Put your money in a high interest savings account while you educate yourself, the market will still be their in a years time. You will have to check American banks/ newspapers to find the best rates.
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Old Mar 19, 2008, 1:22pm   #34
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This made me chuckle....

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Originally Posted by Captain Currency View Post
If you feel like buying bank shares now, the best thing to do is have a lie down until the feeling passes.


Some of the Irish banking shares on the ISEQ:
........Thanks Captain........

I'd have to say though that (and everyone knows it) banks will be one of the best investments you could have ... when this blows over...

Put the money somewhere safe which provides a decent yield - and sit on your hands for now...and watch......... it's just a timing issue.......

Barclays under £4(as close to £3 as possible) usually does the business...
Hbos at multiyear lows today ...... worth tracking
Hsbc - I'm a big fan but I would like to see more carnage, still well above Jan lows
-------------------------------------------------------------------------------------
Stateside ........ most of th big names will be back ......I think Jp morgan will be alright but I want more carnage ...... I also like Amex but not yet...

Citi not sure whether it will still be independent once this blows over... if it is then it will be huge earner.......... time will tell.


just my 2c
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Old Mar 19, 2008, 2:25pm   #35
 
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"Buy Internet stocks, you can't lose" - sorry to disagree, you can lose, no such thing as can't lose.

Banks, long term hold, not sure yet is the time, as for days trading stock, I have found Barclays excellent, but wouldn't hold overnight at present, suppose, if you have a big enough pot and prepared to take the risk, your decision.
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Old Mar 19, 2008, 2:42pm   #36
 
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Originally Posted by peter450 View Post
Would now be a good time to buy big bank stocks? in terms of long term buy an hold strategy, they seem to be trading at pretty low prices at the moment and a lot of it seems down to all the negativity surrounding banking

Are big banks like RBS and barclays a good long term bet at todays prices?
Have a look around the web and its mostly for free.
For instance :-
Who knows what is going on within the banks before the general public ?
Answer :- the Directors

For instance Barclays
12-Mar-08 Sell Robert E Diamond Jr 460.50p 506,600 £2,332,893.01
04-Mar-08 Sell Robert E Diamond Jr 453.80p 468,085 £2,124,169.78
12-Mar-08 Sell Paul Idzik 460.50p 70,316 £323,805.18
10-Mar-08 Exercise of option Robert E Diamond Jr 456.10p 56,261 £256,606.41
26-Feb-08 Buy Sir Nigel Rudd 498.30p 28,000 £139,523.99

I am quite sure Mr. Diamond will have had a look at what is going on in Barclay's for instance before doing the above deals - what do you think ???????
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Old Apr 2, 2008, 2:46pm   #37
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Uk banking is showing signs of life with Hbos up 50% of its lows at one stage today and the rest up at least 20% from their lows...

I posted a bullish note on banks over the Easter holidays and it disappeared into cyberspace... we know what happened next ....... Anyway Cramer said the financial crisis could be ended quickly by Fed's/Authorities buying impaired assets..... this idea is not knew try googling Bernard Connolly - Banque AIG.... It seems as it the Fed is already at it .... and the BoE are considering the same course of action.......

If this is true....... the negativity about banks has been overdone and a rosy future awaits us. We all know banking always get out of jail one way or another.... This cuuld be a once in a generation opportunity to "accumulate" bank shares..........

What if I'm totally wrong about the "timing" ? Well ....we get new lows in lets say Barclays to well below £4 but the longer term argument remains intact....

Disclosure: I have a small positon in Rbs.(a laggard).. but looking to build a portfolio of banking stocks unless I can find an etf/investment fund to do the same job.
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Old Apr 2, 2008, 4:44pm   #38
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Uk banking is showing signs of life with Hbos up 50% of its lows at one stage today and the rest up at least 20% from their lows...

I posted a bullish note on banks over the Easter holidays and it disappeared into cyberspace... we know what happened next ....... Anyway Cramer said the financial crisis could be ended quickly by Fed's/Authorities buying impaired assets..... this idea is not knew try googling Bernard Connolly - Banque AIG.... It seems as it the Fed is already at it .... and the BoE are considering the same course of action.......

If this is true....... the negativity about banks has been overdone and a rosy future awaits us. We all know banking always get out of jail one way or another.... This cuuld be a once in a generation opportunity to "accumulate" bank shares..........

What if I'm totally wrong about the "timing" ? Well ....we get new lows in lets say Barclays to well below £4 but the longer term argument remains intact....

Disclosure: I have a small positon in Rbs.(a laggard).. but looking to build a portfolio of banking stocks unless I can find an etf/investment fund to do the same job.
"Once in a generation" ...I presume your species has avery short lifespan...see chart.

Money started flowing out of banks from Jan 2006 when people of a similar mindset to mine knew that they were playing hide the pea.
At this moment the banks earnings/performance has not even begun to feel the impact of tomorrows marketplace in the sense it won't look much like what we have seen in the last decade...say goodbye to some profit centres as they won't even be coming back.Plenty of AGM's and trading statements to come and to say that I feel analysts are off base with expectations for future earnings would be a vast understatement so if I am right let's see what those earnings and divs look like this year.
No surprise the strongest in the bank sector are HSBC and Standard C as they have much more global exposure. The UK orientated banks though will feel the hit from property ,residential and commercial , much more.
Plenty of time to accumulate when we see who will be the most economically viable when the dust settles down.
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Old Apr 2, 2008, 6:35pm   #39
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"Once in a generation" ...I presume your species has avery short lifespan...see chart.

Money started flowing out of banks from Jan 2006 when people of a similar mindset to mine knew that they were playing hide the pea.
At this moment the banks earnings/performance has not even begun to feel the impact of tomorrows marketplace in the sense it won't look much like what we have seen in the last decade...say goodbye to some profit centres as they won't even be coming back.Plenty of AGM's and trading statements to come and to say that I feel analysts are off base with expectations for future earnings would be a vast understatement so if I am right let's see what those earnings and divs look like this year.
No surprise the strongest in the bank sector are HSBC and Standard C as they have much more global exposure. The UK orientated banks though will feel the hit from property ,residential and commercial , much more.
Plenty of time to accumulate when we see who will be the most economically viable when the dust settles down.
Live fast die young....

Chump, the chart says things are bad ......... and we NOW know that .... so your comment about Jan 2006 was prescient.

Your outlook for the next year or so seems bleak - which if it plays out means we ought to be looking at banks as trading stocks (both up+down) and perhaps a short could be soon at hand...

Thnx for your views...
hs
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Old Apr 2, 2008, 6:57pm   #40
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Live fast die young....

Chump, the chart says things are bad ......... and we NOW know that .... so your comment about Jan 2006 was prescient.

Your outlook for the next year or so seems bleak - which if it plays out means we ought to be looking at banks as trading stocks (both up+down) and perhaps a short could be soon at hand...

Thnx for your views...
hs
I'd prefer to be wrong ,but rational seems realistic. It took a decade of unprecedented credit expansion and overleaverage to get here and to get out of here , BOE must be unlikely to take collateral of unknown value without first ensuring that the institutions in question get their balance sheets robust and the signs of lenders backing off from new business is surely a sign of that.
So as I see it we're going to have both less supply of credit and also falling demand for it as individuals also try to reduce their debt load. This is a contracting spiral and as such I fail to see how the aggregate banking sector is going to maintain revenues and earnings in the face of that. On the plus side it takes a ****strom to make a FTse100 bank drop it's divs in public ,but perhaps that's what we might see ,I obviously don't know .
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Old Apr 3, 2008, 2:12pm   #41
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Even though this is the US it is nonetheless topical to what I can see happening in the Uk in one regulatory form or another. That is ,if you want to park your collateral in exchange for money you're not going to be free to simply take that money and use it in any old way as you might have done before. Going forward how you use it in terms of the risk attached etc is going to be monitored because afterall the collateral remains the property of the insitution and the only safe guard a central bank has on it's value is the ability of the bprrowing banks to take it back at value at some point in the future which means the central bank has to take steps to ensure the borrowing banks remain prudently solvent and of course that passes all the way along the line right down to Little Johnny who just wants a sub to buy some marbles. This is the antithesis of recent banking behaviour where much of the profits made were made simply by applying large leaverage to relatively small margins on large volumes...take that away and it looks to me like a hard market in which to make money.
The link... Fed goes to brokerages to monitor their state: report: Financial News - Yahoo! Finance
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