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Hello Crazy Mates,
Let's have a look at banks, gang. What exactly is going on here?
Are they about to report huge losses because of the American mortgage thingy? Will these losses be so big that bank share prices will fall even further? Or will the drop in profits be small enough not to affect the price very much. Or will good news catapult bank stocks much higher, as sighs of relief are breathed all round?
All these questions are, I'm afraid, impossible to answer. The banks won't tell us for a month or two yet. And this lack of instant information leaves many Crazies with a big problem.
Should we sell our bank shares and wait for another big drop before we buy them back again, once all is revealed? Or should we hang onto the shares in the fond hope that the shares will rise after all? Or should we wave goodbye to bank shares for good and try something a little safer in the present anti-bank environment?
I've thought long and hard about this. Haven't we all? And as soon as I make my mind up to sell, the price of many banks recovers a little. And when I decide to keep my shares now, the price falls a bit more.
But my mind is made up now. For the time being, at least.
I have great faith in banks for making money out of the rest of us, whatever the economic climate. They coin huge profits normally and probably can - once the lending moibility of money is back on track - stand the losses of the mortgage fiasco. No doubt they will recover far faster than the poor American folk who were loaned money to buy homes which they couldn't really afford.
So I'll hang onto my shares. And hope for the best. But do not regard this as advice to anyone else. Anything can happen now. All bank share owners have to take a position on the difficult decision on whether to sell hold or even buy - and I happen to be holding, that's all. Rock on!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
For more information about UKSA CLICK HERE
