We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Bank shares - buy buy buy!?

UnwiseOwl_2
UnwiseOwl_2 Posts: 2 Newbie
in Savings & investments
All,

In light of the recent share price collapse, it is sensible to snap up some very cheap bank shares?

I am a buy to hold investor and surely in time they will significantly recover their value?

Is it time to snap up a few bargains?

Unwise Owl
«1

Comments

  • barrooo
    barrooo Posts: 322 Forumite
    depends on whether they go bust before they recover.

    Personally I think there will be more downside before it gets better and probably a few more forced mergers and bailouts, I'm waiting for the dust to settle
  • alared
    alared Posts: 4,029 Forumite
    Never try to catch a falling knife!
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    UnwiseOwl wrote: »
    All,

    In light of the recent share price collapse, it is sensible to snap up some very cheap bank shares?

    I am a buy to hold investor and surely in time they will significantly recover their value?

    Is it time to snap up a few bargains?
    No thanks. If you want bargains go to Lidl
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • isofa
    isofa Posts: 6,091 Forumite
    It's a good time to buy shares in general. However you'll need to choose wisely!
  • Geoffo_M
    Geoffo_M Posts: 1,161 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    isofa wrote: »
    It's a good time to buy shares in general. However you'll need to choose wisely!

    Not sure I agree with you there. I bought a share (I thought wisely) a month ago, and I'm now 55% down.
  • a7man
    a7man Posts: 365 Forumite
    Now is the time to gamble, not to invest. You can make a lot of money quickly if you are right, or lose it all if you are wrong! You need a much deeper understanding then just "the banks are all collapsing so lets buy some shares" to see who is likely to be most resistent to the downturn.
    Living the good life spending all my money but loving it!!
  • Moorepart
    Moorepart Posts: 181 Forumite
    Do your homework people. It is easy to make money from BOTH sides of any market. :beer:
  • UnwiseOwl_2
    UnwiseOwl_2 Posts: 2 Newbie
    In terms of "doing homework" on bargain shares (particularly banking), can anyone give good advice on what should I be looking for?

    - Press articles ???
    - Financials (P/E ratio, dividend yield) ???
    - Trends ???

    I know I need to find a bank that does not have any specific problems (e.g. HBOS high exposure to mortgages) and is just affected by the sector in general.

    But what criteria should I use? Links to related books/articles/posts also welcomed.

    Thanks!
  • bristolleedsfan
    bristolleedsfan Posts: 12,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    " Buy, Buy, Buy" or "Bye, Bye, Bye" :confused: :rotfl: :confused:


    http://forums.moneysavingexpert.com/showthread.html?t=1160621
  • setmefree
    setmefree Posts: 851 Forumite
    Look Guys today I bought a £10 bargain meat pack from Abergavenny Market, so the steaks are better there
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.5K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.4K Work, Benefits & Business
  • 604.2K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture