Is this a good time to invest in banks?
Yes, I would recommend buying a mutual fund in banks.
AIG rebounded to $2.33 on market close. I don't think this company would collapse easily under $85b bail out by the Fed.
I think you have not to be worry because the financinal crisis is lost almost and with Forex all are the same.
Yes, I would recommend buying a mutual fund in banks.
I don't know if it's a good idea, since a lot of mutual funds have already gone bankrupt. These mutual funds' stock literally went to $0.
Stocks are now moving up as expected. See the current prices:
Goldman Sachs: $111 from $85.79
Citigroup: $15.75 from $13.25
AIG: 2.57 from $1.98
Bank of America: 22.79 from $20.41
The government just bought a ton in bank stocks... Maybe that could say something?
Yes. Obviously the ideal time would be just before the Stock market rose sharply upon the news of the Government bail-out, but timing the market has been likened to catching a falling knife.
If you take a medium-term view of between five and ten years, then you should do well, seeing that share prices are still undervalued, in my view.
Buying the shares of individual banks can be dangerous, as the shareholders of Northern Rock discovered. An alternative would be a Unit Trust, where the Manager's job is to invest in a wide range of banking shares on your behalf, where there is no internal Capital Gains Tax due, when they buy and sell your holdings.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to IFA – Find an Independent Financial Advise
Goldman Sachs and Bank of America are performing well.
Goldman Sachs: 118.43
AIG: 2.21
Citigroup: 13.81
Bank of America: 23.46
I want to update the prices. The prices fall below those I posted on Oct 11 despite the recent rebound and more government support.
Goldman Sachs: $77.78
Citigroup: $11.82
AIG: $2.11
Bank of America: $20.49
Okay, time to update the prices.
Goldman Sachs: $127.69
Citigroup: $3.09
AIG: $1.39
Bank of America: $8.72
Try catching a falling knife instead
GS: $184.37
Citigroup: $4.59
AIG: $43.20 ($2.16 if adjusted for comparison)
BoA: $17.26
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The bailout became law, and what else to worry about? While the market is still in fears, I think this is the best time to get in while these stocks are dirt cheap. Warren Buffet recently invested $5b in Goldman Sachs, and it seems a few other great investors are jumping in right now. After all, how could some of these stocks hit $0 when government is backing them? Even it did, the investment capital is worth the risk anyway. The reward is huge for this kind of risk.
Current prices of:
Goldman Sachs: $85.79
Citigroup: $13.25
AIG: $1.98
Bank of America: $20.41
Come on, share your views.
Why we should get in now?
Why we shouldn't get it now?
Or should we wait until there's some reversal?
Scorp