I don't hold shares in any banks at the moment. But seeing the share prices of banks fall by 50% is quite frightening.Example: This is the chart for ANZ Bank. Its fallen by over 50% in value in the last 12 months. Not unusual - all the other jokers in the pack, NAB, Macquarie, Westpac, CommBank etc.. have done the same or worse.
Quite amazing - its like seeing a big horrible train wreck. I was recommending my friends NOT to buy bank stocks but I myself didn't realize it was going to be this bad.
Goes to show you the buy and hold forever theory doesn't work so well sometimes.
It's probably a good time now to consider buying banks like ANZ - but only for short term gains due to the high market volatility - and only using play money.
(On the technical side: you can see that the support was breached at $28 and showing warning signs of a fall out).
8 comments:
Seems like another case of speculative profit-taking ala 1998.
yep... prices bouncing up and down by a few dollars in the space of a week or so... buy low hold for a week and make a $2 per share profit. on a $15 share, thats not half bad 10-15% profit.... do that for a couple of weeks, could be laughing.
Problem is, private individuals normally won't have enough capital to control prices - all you can do is see the wave coming from afar and try your best to ride it.
Surf's up!!!
agree.. quick ins and outs are the way to go!
blue chip shares becomes brown poo shares... when should i buy??? heheheh Good for buyers now ain't it?
Hey Yau M you should gone with com Bank hey?
unlikely Don.. All the main banks have gone pear shaped with their overseas exposures and gearing issues, Comm bank included. Restrained growth wasn't the catchcry of the early 2000's and when you play for the big gain, you also suffer the big loss. Suddenly there is a lot coming out in the wash about the level of risk taken in these years, but the bed is made and possibly the grave awaits for those who took too greater risk. Its not even local, its a worldwide problem, and the only thing proping the blue chips from going to poo is the price of the assets they hold in, well for Australia property. One sneeze, if those deck of cards fall, the pile poo is going to stink sky high. If you don't believe it, just look at Fanny May in the USA. Of course, mortgages in the US from what I understand have a nice clause in them where if you default, you can simply hand back the keys to your house to the bank, any shortfall is then the problem of the banks. In Australia, same doesn't hold... the debt is tied to the individual and you personally absorb responsibilty for the shortfall.
Its a little bit better - I think CBA went from $60 - $40. Yeah, like I said its probably a good time to think about buying some bank shares - but only for short term profit, ie. 10% - 20% in a 1 week to 3 month period... whichever price target is hit first. But who knows? The prices may go lower. So just go with play money.
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