Really, you think sub-prime will be over by next March? I notice you don't say what year! What about ARMs, Alt-A, near-prime and jumbo? Their rates reset over the next three years.TO BUY OR NOT TO BUY IRISH BANKS.... THAT IS THE QUESTION:
The market appears to be pricing in a recession into the valuations of the Irish banks. I believe that it will be turbulent times until next March when the American banks will be releasing their full year results (which will be properly audited). At that stage the whole sub-prime mess will have played out and investors may gain their appetite again. We will have a rocky ride till then.
Sensible investors will wait... but I would like to take a punt on AIB at these levels.
Really, you think sub-prime will be over by next March? I notice you don't say what year! What about ARMs, Alt-A, near-prime and jumbo? Their rates reset over the next three years.
mortgage resets
I agree. Anyone who thinks the effects of the sub prime crisis will be gone by the first quarter 2008 is fooling themselves. It will take 1-2 years if not more for the effects to be fully seen and worked out of the system.
A sensible investor should be looking at the long term though not hoping to make a quick profit in a few months time based on what you point out is an optimistic hope things will be over in March. For a buy and hold investor investing for the long term 1-2 years is not long to wait if he/she truly believes these shares have been beaten down excessively and are now undervalued.
This is the same kind of stupid advice constantly trotted out on this site about buying a house and "what does it matter, what the price is as long as you can afford it and your in it longterm"
Of course it bloody matters, anyone with a brain in their head should be looking to buy at the bottom or as close to,not buying in on a downward spiral.
I ofter wonder do the "sensible investors" actually think about what they are actually advising people to do,why would anyone want to get in on unnecessary losses.
Of course it bloody matters, anyone with a brain in their head should be looking to buy at the bottom or as close to,not buying in on a downward spiral.
...If an investor believes that prices are lower than values, and that prices are likely to increase over time, then he should go ahead and invest...
just wondering whether financial services is the new dotcom, many hot new companies were set up in the last few years to take advantage of all the cheap money and liquidity, are they destined for the same fate as the dotcom bust, last week a company in the IFSC folded, are there many more to follow and will it infect the wider financial sector like banking and insurance
I don't think they're comparable. The dot com crash was more of a death than a crash. The industry never recovered. The "online only" concept of doing business is only survived by the reliables such as banking, ticket sales etc. Remember in its height there was anything and everything.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?