Bank Shares

jaypers

My S&S ISA is a little unbalanced and biased a bit too much towards Banks (about 35% of it). My Barclays shares are in profit by 85% and Nat West by 174%………had them for a while and did buy a portion of them during the first lockdown as a bit of speculation.

Seems that Banks are really in favour at the moment and keep reading good things about the next profit announcements in Feb etc. Guess the million dollar question is if/when to reap some benefits. I’ll be kicking myself if I sell and they keep going up, and equally so if I don’t and they take a hit. They go ex-dividend next month so that’s also something to consider.

I know the sensible thing is to slowly migrate into Funds etc, and I do have various Funds in my ISA too.

Interested in some views on this nice to have conundrum. TIA.

wmb194

jaypers said:

My S&S ISA is a little unbalanced and biased a bit too much towards Banks (about 35% of it). My Barclays shares are in profit by 85% and Nat West by 174%………had them for a while and did buy a portion of them during the first lockdown as a bit of speculation.

Seems that Banks are really in favour at the moment and keep reading good things about the next profit announcements in Feb etc. Guess the million dollar question is if/when to reap some benefits. I’ll be kicking myself if I sell and they keep going up, and equally so if I don’t and they take a hit. They go ex-dividend next month so that’s also something to consider.

I know the sensible thing is to slowly migrate into Funds etc, and I do have various Funds in my ISA too.

Interested in some views on this nice to have conundrum. TIA.

This morning someone on Bloomberg was saying they still like banks and JPM announced good results last week. It isn't all or nothing though, you could top-slice. People sometimes talk about, 'finding your sleep' level ie. that level of holding/risk that won't play on your mind.

InvesterJones

If in doubt.. hedge

Beddie

As above - sell some, diversify, but keep some too.

Eyeful

If this "nice to have conundrum"  ever starts to worry you or cause you stress, either:
(a) Stick to a savings account.
(b) Buy a low cost Global Multi Asset Fund with a share/bond split you are comfortable with.

Then just get on with life. Your health is more important than any investment you may have.

eskbanker

jaypers said:

I know the sensible thing is to slowly migrate into Funds etc, and I do have various Funds in my ISA too.

Interested in some views on this nice to have conundrum. TIA.

It is certainly conventional to diversify, but those with strong convictions in their ability to home in on specific companies or markets or sectors aren't necessarily wrong as such, so what was it that led you to invest heavily in this sector, and what's changed?

Hoenir

jaypers said:

Interested in some views on this nice to have conundrum. TIA.

The inherent danger with too many eggs in one basket is that the sector as a whole takes a complete pasting. When you least expect it to. Diversification is a primary rule of long term investing. Doesn't stop many people speculatating though. 

jaypers

eskbanker said:

jaypers said:

I know the sensible thing is to slowly migrate into Funds etc, and I do have various Funds in my ISA too.

Interested in some views on this nice to have conundrum. TIA.

It is certainly conventional to diversify, but those with strong convictions in their ability to home in on specific companies or markets or sectors aren't necessarily wrong as such, so what was it that led you to invest heavily in this sector, and what's changed?

I worked in IT (for a Bank) for a long time. As such I had share options and saving schemes over the years. It’s a sector I feel I understand, so even after no longer being a Bank employee I was drawn into speculating in the sector, especially during lockdown. After so long where the sector has by no means been a darling of the stock market, things seem to have turned and I guess I’m not sure if and when the bubble will burst.