Investing in Banking Sector Shares - Advice sought please

sabretoothtigger

In theory they might make a profit on northern rock in the long term, the cost should be returned and the bank privatised but if they manage that before the next election I would be surprised

meester

brightonman123 wrote: »

I think sarahblue was eferring to bank shares in general, EXCLUDING northern rock! (are they still trading these?)

Royal Bank of Scotland (RBS) has posted a pre-tax loss of £691m during the first six months of 2008, the second-biggest loss in UK banking history.

tradetime

I am presently saving for a house deposit and obviously can't afford to make a poor decision, but equally I don't want to miss out on what could be considerable growth if the share prices start to get back to previous levels.

Am I reading this wrong or is this an opportunity?

As someone else pointed out, if you are saving for something important ( a house) then find the best paying savings rate and save.
Investing in the banking sector at the current time is imho a high risk strategy, as such there may be great gains to be made, but there is a very good chance you will lose a large proportion of your money. Only invest money in banks you are fully prepared to lose.

sabretoothtigger

If he was buying a lump sum of these shares I would agree but gradually buying into the sector isnt as high risk in the long term.
So long as he can pay the rent, its up to him if he wants to gamble the date at which he can progress to owning his house

EagerLearner

I am in the same predicament, so have bought very little and will watch and buy via direct debit in say £50 amounts as and when... I got £200 in Lloyds for now, not a fortune but a test for my nerves nonetheless!