Thursday, February 28, 2008

Ignore the pundits – stay out of banking shares

Ignore the pundits – stay out of banking shares

While equity analysts are messing about, dithering over whether banks are worth buying, the rest of the world’s asset markets are screaming about the end of the world. We’ve been living through a credit bubble – banks sell credit, and so they’ve prospered. But now the bubble has burst. That means the hard times for the banks are just beginning. Just as when the tech bubble burst, people will have a hard time coming round to believing it’s all over, and will keep buying on the dips. But ignore those tasty dividend yields...

Posted by damien @ 09:37 AM (663 views)
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