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Banking Stocks... Ouch

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Hi,

I have a quantity of banking shares (from a staff share save scheme) which have been held for 10 years... if I sell them now I "realise" the paper loss... but would £500 (ish) be better off in a FTSE tracker, or are the banking shares now so cheap that they might actually be a good buy?

Cheers

Neil

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Hi,

I have a quantity of banking shares (from a staff share save scheme) which have been held for 10 years... if I sell them now I "realise" the paper loss... but would £500 (ish) be better off in a FTSE tracker, or are the banking shares now so cheap that they might actually be a good buy?

Cheers

Neil

I'd cash them in and have a weekend away. Worrying about how to invest £500 is a waste of energy.

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I'd cash them in and have a weekend away. Worrying about how to invest £500 is a waste of energy.

Maybe £500 is not much to you, but it's not a small amount for me... I would rather put it in a Cash ISA than blow it in Vegas! :)

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Maybe £500 is not much to you, but it's not a small amount for me... I would rather put it in a Cash ISA than blow it in Vegas! :)

Recently there were current accounts paying upto 8% for smallish monthly savings. If they are still available that might be a good option. No one really knows where bank shares will go from here.

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Unfortunately, none of us have a crystal ball to advise you. My personal opinion is that bank shares are not going to see substantial increases until the US, the UK, and the European Union get their houses in order economically. Whether now is the time to buy anticipating a recovery is anyone's guess.

If 500 pounds means a lot to you and you want to preserve it from further losses, maybe you should sell and put it into time deposits for safekeeping. If you decide to buy shares, I suggest a basket of shares (unit trust, mutual fund, or ETF) so that if one company or sector tanks you will be somewhat insulated from the damage. You also may want to "cost average" your money into the basket of shares by buying a small fixed amount every month or quarter.

Good luck.

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Personally I am starting to wonder if we will look back on this time in a few years and say if only I had the nerve to buy bank shares back then I would have made a mint..

Thats the classic conundrum isn't it?....Everyone wants a sure thing...Well unfortunately that's an isa with a negative real interest rate

The government may want to sell off some of the nationalised banks before the next election and to precipitate that with some bank share ramping...

Just my gut feeling...but the tide will turn one day and when it does there is a lot of money to be made

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Personally I am starting to wonder if we will look back on this time in a few years and say if only I had the nerve to buy bank shares back then I would have made a mint..

There will come such a time. The question is, when?

Get it near enough right and you win. Get it wrong and ... you're like my friend who topped up his B&B holding at about 50p.

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Personally I am starting to wonder if we will look back on this time in a few years and say if only I had the nerve to buy bank shares back then I would have made a mint..

Thats the classic conundrum isn't it?....Everyone wants a sure thing...Well unfortunately that's an isa with a negative real interest rate

The government may want to sell off some of the nationalised banks before the next election and to precipitate that with some bank share ramping...

Just my gut feeling...but the tide will turn one day and when it does there is a lot of money to be made

Shouldn't you invest in what you understand?

I can't understand banks backed by the state.

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I am buying bank stocks now.

Rather than trying to select which might be a winner I am buying the XS7R dbxtrackers ETF which tranks the DJ eurostoxx bank index.

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Shouldn't you invest in what you understand?

In that case i'm buying more Guitars and Motorbikes! :lol:

Edited by Spot

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