Shares in banks.....

Reaper

gadgetmind wrote: »

ISTR that most holders of those are in the "pushed rather than jumped" camp. Which issue(s) are you eyeing?

TMF forum peeps are "well expert" on FI whereas I am less than beginner.

I can't claim to be an expert though I have been researching it a fair bit recently.

With ECNs the 10-12% running yields are the attraction. The huge risk is having them forceably converted to ordinary shares if Lloyds Tier 1 drops below 5%. Whether you think they are a good bet or not revolves around how likely you think that is.

On the plus side currently Lloyds Tier 1 is in excess of 10% so they have a healthy buffer.

On the minus side if there is another crisis in Europe (eg one or more countries default on their debts) it is hard to get a feel for how badly that will affect Europe's banks, some of which we know are weak, and how much of a domino effect that might have.

I am tempted, but have not made up my mind yet.

Fuzzythinking

To be brutal honest, the share in RBS and LLoyds are very cheap and they are climbing up slowly. I expect both shares will be double within two years. Hence you will be doubling your money. That is my prediction.

FT

lvader

Fuzzythinking wrote: »

To be brutal honest, the share in RBS and LLoyds are very cheap and they are climbing up slowly. I expect both shares will be double within two years. Hence you will be doubling your money. That is my prediction.

FT

You do know that if the Lloyds share price doubles they will be worth more than they did at their peak!