Lloyds Shares Keep or Sell?

couriervanman

badger09 said:

ranciduk said:

I can remember when those were worth over a tenner each!

The last time I ever took any notice of my husband's opinion on matters of finance, well over a decade ago, I paid more than £5 per share for them. Definitely my last ever purchase of single company shares. 

Now I'm the not-so-independent FA in the family. So far, so good

Didn't help that Lloyds were hoodwinked/forced to buy HBOS back in 2008 had they known they were just about to go bust they wouldn't have stepped in

EdGasketTheSecond

Banking shares are not a good bet going forward. They can't make money with low interest rates and will likely suffer huge bad debts from companies and people going broke due to Covid fallout. Quite possibly another banking crisis awaits us soon. Then there's the usual leeches pushing claims for mis-selling S&S ISA's now that PPI has finally been put to rest.

MaxiRobriguez

EdGasketTheSecond said:

Banking shares are not a good bet going forward. They can't make money with low interest rates and will likely suffer huge bad debts from companies and people going broke due to Covid fallout. Quite possibly another banking crisis awaits us soon. Then there's the usual leeches pushing claims for mis-selling S&S ISA's now that PPI has finally been put to rest.

A lot of that is already priced in. Normalisation and/or inflation would be a boon to bank stocks. People who are happy with high risk/high reward might suit banks where they are at the moment.

itwasntme001

MaxiRobriguez said:

EdGasketTheSecond said:

Banking shares are not a good bet going forward. They can't make money with low interest rates and will likely suffer huge bad debts from companies and people going broke due to Covid fallout. Quite possibly another banking crisis awaits us soon. Then there's the usual leeches pushing claims for mis-selling S&S ISA's now that PPI has finally been put to rest.

A lot of that is already priced in. Normalisation and/or inflation would be a boon to bank stocks. People who are happy with high risk/high reward might suit banks where they are at the moment.

No one really knows what will happen to the macro picture, "experts" are known to have got it wrong, even the smartest.  I sold my Lloyds shares at a loss and bought Boohoo (turns out so far that move has been flat overall in terms of PnL but its early days still).  Boohoo I see as having quite a lot of upside and a lot less dependent on the macro environment (compared to Lloyds) which is really up in the air given whats going on.

Looking at what has happened with Japanese banks and European banks it scares me at what could happen to Lloyds IF we also go down that route/ rabbit hole of negative interest rates.  European and Japanese banks continue to be terrible investments because of low/negative interest rates.  IMO its a 50-50 bet and one which I do not wish to participate in.

MaxiRobriguez

itwasntme001 said:

MaxiRobriguez said:

EdGasketTheSecond said:

Banking shares are not a good bet going forward. They can't make money with low interest rates and will likely suffer huge bad debts from companies and people going broke due to Covid fallout. Quite possibly another banking crisis awaits us soon. Then there's the usual leeches pushing claims for mis-selling S&S ISA's now that PPI has finally been put to rest.

A lot of that is already priced in. Normalisation and/or inflation would be a boon to bank stocks. People who are happy with high risk/high reward might suit banks where they are at the moment.

No one really knows what will happen to the macro picture, "experts" are known to have got it wrong, even the smartest.  I sold my Lloyds shares at a loss and bought Boohoo (turns out so far that move has been flat overall in terms of PnL but its early days still).  Boohoo I see as having quite a lot of upside and a lot less dependent on the macro environment (compared to Lloyds) which is really up in the air given whats going on.

Looking at what has happened with Japanese banks and European banks it scares me at what could happen to Lloyds IF we also go down that route/ rabbit hole of negative interest rates.  European and Japanese banks continue to be terrible investments because of low/negative interest rates.  IMO its a 50-50 bet and one which I do not wish to participate in.

I don't own any bank stocks either but have considered it. I do own Boohoo shares though.