Bank shares - now a good time?

[McJamweasel]

I'm seriously considering investing some decent money in the stock market with it being pretty buggered at the minute, and I was thinking that maybe the banking sector could be a good one to go for. Surely they can't head any lower than they are now (RBS is currently on 67p - it was close to 520p 12 months ago)? And even if they do it can only be in the relatively short term with a decent amount of growth once this recession begins to ease.

So what do you reckon? Good? Bad? Any other sectors that you think may be a better bet?

I'm also going to be having a bit of a 'play' with a couple of hundred quid, to see how it goes and maybe make a bit of extra pocket money.
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BCF: Be yourself, just don't be an arse.

[Polo]

Everyone should be out there buying nothing but RBS shares. I got me some.

Er, it has nothing to do with them being my employer. PLEASE BUY SHARES - WE NEEDS THE CASH.

They will go back up as long as you do not mind waiting. I have invested mine for my daughter for when she turns 18. She is 5 at the moment.
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My mum smells your fingers

[Itchy]

Noooo , they can and will get lower....

The thing is the deal with the devil recently ie to HBos Lloyds B&B etc was you can borrow this wedge BUT you can't give out dividends for 5 years , investors saw this and offloaded them , the banks said one year ....

Which means no dividends for a year at the very least....

Also if you are trading outside of an ISA that means fees , and stamp duty , which means you can trim from 0.5% of the amount you are buying instantly as a loss of .5%.

Thus for your couple hundred quid its not worth it.....

(note you need to make 9600ish for it to be taxable under capital gains at which you'll pay 18%).

A BETTER method to gamble like that is to use the currency markets, Sterling is doomed, it just keeps sliding down and down and down , thus if you bought

USD 3 weeks ago @ £1 = $1.73,

USD now @ £1 = $1.62 ,

you'd have made 7% , BUT you also have to consider handling fees and commission.


EDIT

My current jump is at $1.50 , and on the next plane out with a suit case of my money at $1.40.
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Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[Itchy]

[trevoriv]

Invest in Gold Seriously.

Most people at the moment are asset rich and cash poor but for the lucky few who are the reverse and have cash spare they can really benifit from the current climate.

Any product that would have involved getting credit for in the past such as House/Car/Big TV etc is now going to be much cheaper to buy as people cant get credit any more so over the coming months the prices of things like new cars is going to plummet
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Past: '96 Thundercat, '02 ZX636R (A1P), '58 KTM 690 SM LC4 Current: '06 ZX636R (C6F)
Mudskipper wrote: Someone just has to sig that...

[trevoriv]

RBS will be okay once they flog their insurance arm but its going to be worth a fair few quid less now than it was a few months ago.
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Past: '96 Thundercat, '02 ZX636R (A1P), '58 KTM 690 SM LC4 Current: '06 ZX636R (C6F)
Mudskipper wrote: Someone just has to sig that...

[Itchy]

No gold is actually sliding , lots of people who bought @ $950 are getting burned at $750...

Gold has some serious problems associated with it:

#1 You can't actually buy bars or bricks of it and keep it at home you need to pay a company to store it which usually costs 5% of its value and to buy it costs you 2-3% of its value, which means you buy £1000 of gold you've already lost about £50.

#1-1 you can buy gold coins like krugerands / soveriegns etc the problem is they cost more than the gold value a soveriegn is about £75 more than the gold value , thus you buy = you instantly lose £75.

#2 The gold dealers of the country use Lloyds TSB as their bankers...if Lloyds go bust which they have...

#3 Any purchase of gold over £5000 and you are reported to HMRC
and note significant gold ie bars have to be stored in registed and secure vaults...

This means that if the shi*t really hits the fan ie 1933 the government like the US government did can seize it in one fell swoop and will not have to go house to house searching for gold.


#4 its over subscribed you can't buy it for love or money, which makes all of the above completely moot...

As a counter point investment gold is completely tax free, in Asia and the Middle east this is completely different however in that you can own gold and stick it under your bed or in a private safe deposit box.
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Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[Tonka]

[Paddy Blake]

You need to be careful.Don't just jump in and betting shares will go down.
If you put a grand on it to go down and don't put a cap on it going up you could lose way more than the grand you put in.
People say things like you cant time the markets and then say buy at the right time.
You research and then some more and find the right time to buy and sell.
Try find out if you are likely to get dividends as some never give them out they put the money back into the firm.

Paddy.

[Hetzer]

Ha!

Invest in a bunker and a rake of survival gear.
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"There's the horizon! Ride hard, ride fast and cut down all who stand in your way!"

[Paddy Blake]

Haha hetz you made the broker add at the bottom of the page go away.

Here's a site anyone looking to invest should look at.
https://boards.fool.com/

Paddy.

[st3v3]

We really haven't seen the start of the recession and the downward spiral yet......... Think this is bad? Got waaaay worse yet.
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Roger wrote: Women don't get damp for clingy puppies. Get some better happy pills, hit the gym & buy a medallion the size of a dinner plate. Job done

[colin1]

[Paddy Blake]

Sorry that is what I Thought I posted.
Thanks Colin.
All good anyway.Might be best to look world wide as Itchy said you can make on the money difference but also on the shares.

Paddy.

[Clanger]

According to the Financial experts, investing in stocks & shares now would be a wise move.
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Be who you are and say what you feel, because those who mind don't matter, and those who matter won't mind - Dr. Seuss

[hellkat]

[Hetzer]

[Clanger]

oooh...good job I just listen and never act to these peeps...it was on Wright Stuff this week!!!
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Be who you are and say what you feel, because those who mind don't matter, and those who matter won't mind - Dr. Seuss

[Clanger]

[hellkat]

I only ever spend cash.

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Not nearly as interesting in real life.

[Hetzer]

[Clanger]

There, that's me told
Except I did have to read it a few times over because I'm a bit ill at the moment, and nothing really makes that much sense to me these days... but I won't hold the big words against you
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Be who you are and say what you feel, because those who mind don't matter, and those who matter won't mind - Dr. Seuss

[hellkat]

The Hetzer - Clanger translation interface for today:
Government = bad
Big Business = bad
Downtrodden masses = stupid
Hetzer = Webellious Wevolutionary
https://www.toontowncentral.com/forums/images/smilies/8/wub8.gif
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Not nearly as interesting in real life.

[colin1]

Id agree with hetzer, but the system has just evolved and it has a life of its own, its not the diabolical plot of the rich to keep the workers down, its just the rich's plot to make more money, and the poors intention to look less poor than the other poor people by having nice bling.
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colin1 is officially faster than god

[Itchy]