Question:

Anybody know about shares?

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I was thinking about investing about £50000 into bank shares ie hbos rbs as they are so low ,would appreciate any feed back.

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  1. Don't buy shares just because they r low.....the status always fluctuating........check the past record of the company and estimate how well the market will be favorable to the company in future............i think just for these two questions u have to make an extensive research...........but don't be afraid put all ur patience and effort to do so........... so that u wont loose anything out of it.


  2. Investing in one sector, especially one that is depressed at the moment is quite risky; they are low but they might go lower in the next few months. Many are issuing shares to raise capital at 1/4 of the price they bought them back for  a couple of years ago. The big banks are fairly safe long term and will recover eventually in 2 - perhaps 3 years.

  3. Don't put all your eggs in one basket.  It is a good idea to have investments in different sectors e.g Utility co.s such as electricity or water.  Presumably you have used up your tax free investments in ISAs, national savings etc.

  4. Don't invest unless you have knowledgeable info, or data that  justifies it. Don't risk what you can't afford to lose.

  5. Barclays is the one brokers are most upbeat on.They may go another 20% lower.But your idea about investing into bank shares is very sound indeed.The banks will recover and will give huge returns,even at todays prices.They are cash generative and popular with the big investers.l would buy Barclays and HBOS the day after the rights issue completely finishes,all the short sellers usualyy buy back then and you get a bounce.Either way l say go for it.

  6. might be better to buy a bank with large percentage of retail banking rather than mortgage business. Therefore Lloyds, Barclays, RBS, HSBC rather than HBOS, A & L, B & B

    You could write a put option on Lloyds at say 300p or lower.

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