Is it good to invest in banks shares?I've been trying to learn how to invest in shares. According to a tip from a millionaire which is her method of finding companines to invest for a year, I've reached some sort of direction that my stock investment should be in financial companies such as Aviva(Norwich Uinion),Barclays,RBS, Lloyds TSB... | |
I have been buying Wachovia (WB); CEO recently did an insider purchase of 100,000 shares, so the head banker there thinks its time to buy.
I also like (SOV) Soverign Bancorp, good bank which is very beaten down in stock price.
The problem is knowing when, and what shares to buy; for an amateur, it is just guess work; more likely to lose than gain. The best way for beginners, is to invest in unit trusts, or investment trusts. Your money is spread over a number of companies; thus diluting the risk. Fund managers, backed up by research, select where the funds invest. Performance tables are available to help select the ones with a good history.
Shares go up and down according to how people see the companies performing compared with how they thought they were performing some time ago. It is therefore completely unpredictable as to whether shares will rise or fall. There is no method of predicting the future of shares, any more than you can predict heads or tails on the toss of a coin.
However, as a general rule, shares go up over a long term period faster than the rate of inflation, so if you are willing to wait for some time, it is not a bad investment as long as you buy a diverse range of them.
The only other way is to have insider knowledge (which is illegal) and buy or sell just before some important announcement which no one else knows about.
RBS IS set to do well as their profits fr ths Qtr is ahead of estimates ie it exceeds estimates; so it is a gd buy. also barclays is still showing a buy signal on many sites tth i have seen. i have not yt checked the others.
pl buy some fr me too!!
it is upto u to decide whether u want short or long term returns.
L
you bet ye, they are a bargain right now.
excellent time to invest in the stock market old boy
Please buy my shares please please
