Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I just bought a regional bank ETF due to them being cut in half as a sector. My view is that a year or two from now I could double my money if they recover. Or if I buy the 3X etf it would certainly double. I think most of the bad news has been baked in. If you don't think the worst is over, what total percentage do you think the ETF will fall?
Commercial real estate is a big shoe still to drop and the regionals are set to take that on the chin. Hence why pac west just sold some of those loans off at a discount to improve cap ratios
Commercial real estate is a big shoe still to drop and the regionals are set to take that on the chin. Hence why pac west just sold some of those loans off at a discount to improve cap ratios
I feel like this has already been priced in though since it is widely known.
I think you're right about regionals recovering in 1-2 years, but recovery or not, I'm actually transitioning away from investing in banks. I'm long BAC and I like a lot of the others, banks like JPM, USB, and EWBC, and a small, local RI bank WASH, but I'm getting tired of the roller coaster bank ride every time you get a hiccup in the economy. Will they stop buybacks, freeze dividends, etc. I'm going to keep my BAC, but will avoid banks going forward unless they get like 2008 cheap and I can come in and bottom feed.
I have taken it on the chin with a few smaller banks and a few larger financials; however, I'm sticking with them and feel as though they will recover and then some in the next 5-10 years so I'm not worried. I have actually added to a few financials that are down (TROW, PFG).
I have taken it on the chin with a few smaller banks and a few larger financials; however, I'm sticking with them and feel as though they will recover and then some in the next 5-10 years so I'm not worried. I have actually added to a few financials that are down (TROW, PFG).
5-10 years seems like a long time just to recover.
5-10 years seems like a long time just to recover.
“will recover and then some in the next 5-10 years”. And then some. 5-10 years is not a long time to a long term investor.
I bought BAC during the GFC, and even with the recent pullback, I’m still up 330% and getting a 10% plus dividend yield on cost. I’ve trimmed the position a bit recently to pay for a daughters college tuition, but it’s still a very profitable position.
If you can stand the volatility inherent in financials, now is a good time to buy solid companies.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
