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Bank Shares Up Today

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Alliance & Leicester 8.73%

Barclays 5.11%

Bradford & Bingley 19.12%

HBOS 0.92%

HSBC Holdings 1.52%

Lloyds TSB Group 6.12%

Royal Bank of Scotland Group 4.41%

Standard Chartered 3.28%

Is the market going mad?

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The market pretty much always overshoots in both directions. The 20 or 50 day trends are more significant unless you're day trading.

All these shares have tasty yields which makes them enticing :rolleyes: .

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Obviously you did miss something. Its been controlled, everything is fine again, credit crunch is over and everybody survived.

Sorry, got taken over by Nu Labour/Bush spin machine there for a second.

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shares often hit their lows before the worst of the news is published, since fear of how bad it can get is often worse than reality. Not always, and not individually, but collectively.

If you think about the last down, house prices fell sharply over many years from 1989, repossessions climbed sharply in 1991/2/3, but bank shares bottomed out in 1990 because by then it was accepted that losses would be huge in future years. Investors look forward and run for cover at the prospect losses might emerge - the emergence of losses is no surprise.

Bank shares are now rated at similar or much lower levels than the low hit in 1990 when house prices collapsed, in addition interest rates being higher meant the interest lost was far greater, and when unempolyment and recession cost the UK and were more severe than anything yet forecast.

Everyone is short - if the emerging newsflow, whilst terrible, is less terrible than feared by the marginal disinvestor, who is currently the most bearish hedge funds, the bear squeeze will be lively.

edit - typo on date

Edited by Icantbelieveitsnotbutter

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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