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Is now a good time to buy shares in banks?

Hello

As the majority of prices in bank shares seem to be low, is now a good time to buy? The government won't let the biggest banks go under and they will eventually recover, won't they?

If I were to do this, which banks should I go for? Should I get shares in several or focus on just one?

I've never bought shares before, how is it done?

Many thanks

Comments

  • Reaper
    Reaper Posts: 7,340 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    In my personal opinion you have missed the best opportunities. For example Barclays is now more than 3 times its lowest point (51p vs 157p now if I remember right).

    I don't think the banks will ever get back to the sky high prices they commanded before. Also while you say the government won't let them go under if they do that by grabbing shares in the company then it dilutes your shareholding. They can even go further and take it over (eg Northern Rock) in which case your shares become worthless.

    I have now sold my Barclays shares. I still have some Lloyds ones for the long term but that's all.

    However if you did want to go for it then you need to sign up with a stock broker. There are various ones which allow you to do trades online or by phone. Expect to pay £10 - £15 each time you buy or sell. I don't know which is best, I signed up to Self Trade for no very good reason (they bribed me with £100!).
  • sabretoothtigger
    sabretoothtigger Posts: 10,035 Forumite
    Part of the Furniture 10,000 Posts Photogenic Combo Breaker
    Now is a good time as is next month and so on, dont spend it all now
  • d712
    d712 Posts: 235 Forumite
    To fatpig:

    I know they're low for a good reason, I'm not stupid. The economy will recover and share prices will have a 'good reason' to go up again, hence my original question.

    To everyone else:

    Thanks for your responses.
  • Buddy195
    Buddy195 Posts: 144 Forumite
    d712 wrote: »
    To fatpig:

    I know they're low for a good reason, I'm not stupid. The economy will recover and share prices will have a 'good reason' to go up again, hence my original question.

    To everyone else:

    Thanks for your responses.

    Fatpig must have been a share holder in a failed bank as he/she is very anti them. Shame he/she can't put their point across better!
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Buddy195 wrote: »
    Fatpig must have been a share holder in a failed bank as he/she is very anti them. Shame he/she can't put their point across better!

    Fatpig is a Troll along with his AE Napoleon :D
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Wells Fargo seem to be doing pretty well!

    Perhaps that suggests the remaining British banks could be beyond the worst?
  • latecomer
    latecomer Posts: 4,331 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I was considering buying some bank shares (small amount of capital) and set up an account online yesterday and today all the banks are up on the well fargo news. Typical :D
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'll probably do it in a few years time when the debts are paid off and they're paying dividends again. If they pay income as well as they used to then I reckon they'd be a good long term option, until I know that for sure I don't want to risk it.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
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