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Epilitoulkror
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I noticed a couple of banks, Royal and Bank of Nova Scotia went below their 52 week low. Are they a good buy now?
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Lomeli
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This is a question that i want to answer prudently. So, if you have a time horizon of ten years for your investments I would say maybe. If your time horizon is one year i would say no. If your time horizon is 15 years or more I would say yes. Personally the only banks I would feel comfortable investing in are RBC, BNS, and TD the other 2 of the big five scare me a little. But remember you have to do your research… Sorry if this answer is a little timid, however i would hate for you to come back and blame me for some losses in the next 6 months. I think it is imperative to have a longterm approach if you are trying to profit from this market.
Thanks,
Admin
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Epilitoulkror
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I see what you are saying about how long i am going to be invested. I am thinking somewhere in the range of 3-5 years. I am a little bit reluctant to invest now from what you said about ‘time horizons’.
thanks
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DynastyRG
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I would agree with the Shark that it is an excellent time to invest with banks because if we were to take RBC as an example, it was at 47.27, last year at this time and today we are resting at 24.07. Definitely there is some room for some return on investment.
However just because there is some room does not mean that it will not take a long time to get back to that nice $45+ range. The market can drop very quickly but in the banking industry gains are rather slow.
I personally would look for something that will move faster.
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DynastyRG
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I thought this was an interesting article in relation to this topic.
http://50plus.com/Money/BrowseAllArticl … ntID=21934
enjoy
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Epilitoulkror
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so i guess the moral of the story is don’t buy BMO if you want to keep getting dividends?
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DynastyRG
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well what i took away from that is we can partake in dividends for half of what it cost us before since the big banks have a certain amount of prestige to up hold.
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Epilitoulkror
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So you think the dividends are safe, I know seldomly, if ever, have they cut the dividends in the past but i think this situation is also unlike any other. So….
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DynastyRG
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Well if you can’t put ur money in the Bank where else can you put it? I usually view it as the place of last refuge. I’d keep it under my mattress but that won’t fight off inflation.
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