budget 2009 effect on banking shares

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falinx

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Hey everyone

so quite importantly the banking shares have been looking amazing till now. Will the budget with all the talk of central control affect the share price adversely or not?
 
Re: budget 2009 banking shares affect

The price at which problem assets are sold will be one of the key drivers of bank profitability short term. The future levy will also impact on profits- afraid no real visisbility yet on earnings in my opinion.
 
Fair enough, so say one was to steer clear of this banking debacle what would be the next best share to be looking at?
 
I dont think anyone can give you an answer for that - it depends on lots of things
1)your risk/reward outlook
2) timeframe of investment
3)loss tolerance
etc etc

On a general note pro cyclical stocks may outperform if the global economy has passed a low point. The strength of the recovery if any, will be a key driver of cyclical equities
 
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