Time to start investing in Banking again?

agent_orange_2

Banking shares are highly volatile currently, there are plenty of people and probably banks themselves making money shorting bank shares. The unknown quanties of 'toxic debt' held by some uk banks is the problem. Any bad news state side causes these shares to drop like a stone but likewise an inkling things might be on the mend, and up she goes.
I currently hold rbs and barclays - I promised myself once they returned to profit (which is now the case) I would off-load them. But, selling on the rise has never been a strong point of mine.
Oh yeah, I'm not so sure anyone should be counting on the trend of increased dividend, in fact the opposite is probably more likely.
All imho

dunstonh

Opinions, opinions, opinions....

Moneyweek advises against banks yet you see other researchers having Jupiter Financial Opps as being a hot tip for the year. For every person saying you should do something you will find an equal number saying you shouldnt.

Long term, banks are cheaper now than they have been for a long time and for long term investing, I think they did offer value. Short term, I think you will still see fluctuations.

purch

Opinions, opinions, opinions....

Yes..lots of differing opinions

Basically that is what the Market is.............a lot of opinions as to what the future holds.

One of the keys is success is to decide which opinions will carry the most weight over the longer term.

Until the 'credit crunchie' situation has played itself out fully, Banks will continue to be a risky play

Meltdown_2

agent_orange wrote: »

The unknown quanties of 'toxic debt' held by some uk banks is the problem.

It seems like this will be the Bank of England / taxpayers' problem soon ... :rolleyes:

agent_orange_2

Meltdown wrote: »

It seems like this will be the Bank of England / taxpayers' problem soon ... :rolleyes:

Yes, I can see it now, uproar when Bank of England/taxpayers pick up the tab while banks pay dividends to share holders

amcluesent

RBS being forces into £12B rights issue. How many more will be going cap-in-hand to shareholders for emergency funds?

ad44downey

For the record I sold all my bank shares today after the news of a rights issue by RBS. I still think the major UK banks (not A&L and B&B) are absolute bargains at their current prices and will probably double in value within a couple of years. But I don't have any spare cash to invest in more bank shares via a rights issue at the moment so decided to sell.

Browntrout_2

ad44downey - for the record you do not have to take up rights issues, and the rights are not confirmed anyway.

I bought a few RBS this morning even though I generally stay away from single company shares and invest mainly in Managed Funds.

Decided 354 was a screaming buy.

You call sell your Nil Paid Rights into the market, although commision is charged.

ad44downey

That's true but if you don't partake in the rights issue then effectively you are losing out as your existing shareholding is worth less than previously.