The volitity of the RBS SP has been variable this year as has been the case the past 3 to 5 years .. The restructuring will come to an end one day .. Maybe next February with the annual full year results it will be the start of the end of the billions of legislation pay outs .. To be annouced ... And a start of a steady if slow increase in yearly profits ...
It has been a long time road since 2007 .. And I think the heady days of banking now is probably somewhat different to 10 years ago... Since The financial crisis happened it has changed a lot of things from lower pensions, higher house prices and lower income standards to many... The closure of many hundreds of shops and businesses cutting back on staff and those working told to do more.. Credit card use has increased since 2007 if reports are true as like payday loans ect ... Debt on the increse again and bigger mortgage loans to those that can buy a house at inflated prices.
Unless more have an increase in their income to start to afford to buy homes .. I wonder how the banks will fair in the next coming 10 years.. Less mortgages ... Who knows
Maybe the financial status of the majority are now lower than 7 years ago... Savers are certainly suffering ..
I would imagine that the Internet rate rise when it comes, will probably be the start of the next financial changing years to come.. As the tide of change that results from any interest rise...
RBS was a basket case but what we see now is a process of restructuring and deleveraging, which takes time to sort out and has significant financial costs. Additionally, we are talking about a bank, a big bank, that has to unwind billions of pounds. This is why when RBS results show a periodic profit, it is a relatively small profit and when they have shown losses, which has generally been the case for the last 7 years, they appear substantial. I am not sure about the 'limiting losses and jumping out' idea: the kinds of investors who have sufficient stake to affect prices will presumably be aware of the potential pitfalls of investing in a bank 80% owned by the state with serious liabilities, legal scandals and paying no dividend. I cannot believe that there were large numbers of investors out there, given RBS's track record over the last seven years who were actually surprised by the market reaction to this set of results. My guess is that given the tepid state of this latest update, the shorters were primed to take advantage of the likely reaction. RBS might have been a basket case if it had suddenly become apparent that there are substantial systemic and financial problems but we are seven years on since the fundamental problems arose.
Another (tiny) step forward - provided there are no more undiscovered scandals I'm hoping for for consistent but very slow progress. My expectations are not high - HMG wants sale of shares at any price - a dividend will help.
RBS to cut Citizens stake to 20% after $2.6 billion sell-off of shares: The Royal Bank of Scotland is accelerating its exit from U.S. bank Citizens Financial after unveiling a proposal to sell its remaining stake in the lender within the next five months.
I sold all my RBS at 330p a while ago ..at a modest profit of £1700..rounded up..never down..lol... and put the money into buying more Lloyds where I'm up £15,000 to date with a pretty bright future. Depending on what happens to Barcs I may well sell 2/3 of them and buy back into RBS but I'm definitely leaving Lloyds alone but I appreciate you're not suggesting I sell Lloyds but rather putting any more funds into RBS which I agree is a good share to trade. On Lloyds I always put a 'strong buy' recommendation..the predictive text wrote not strong but 'storming'..so a storming buy..lol... but with RBS I just don't know,it may well slip some from this level. Barcs I rate as a buy and maybe even a strong buy after today's results and the prospect of enhanced divis.They are also going to do something with the investment arm..like UBS..slimmer more targeted,less dealers…as against leaving it as stays quo or closing it down. Whatever John Macfarlane decides I'm sure will be the right way to go. I think a lot of confidence has come with him now at the helm.
A friend asked me why I'm just in banks and I suppose it's a fair question..eggs and baskets and all that..but I adhere to another dealing recommendation..stick to what you'r familiar with.. having said that I did have an eye on ITV when they were 78p..look at them now ,so I may buy them should any weakness show up but only if through general market conditions. Someone over on Lloyds said that they don't usually pity all eggs in one basket but he/she has done so with Lloyds which just supports the adage..exceptions to rules.
I actually think that today there's more scope to make profit than years gone by but only if you buy and sell short term. As I say, I'm intending to leave Lloyds for two years,I think the divid will be very good and quickly too. Having said all this when it comes to selling shares I dither..no probs diving in but selling ? ..not so good so I need a change of mentality. I kept Sage for ages but did ok.
Re. RBS..as it's the RBS Board..I think it will hobble along for a while yet and as you say..not in so many words..along the way there will be good buying/selling opportunities ...for the bold and cliffb1234..hey Cliff.. knock the 1234 off..it's pain to write all that..Lol..I think you have a good strategy there. It would also be psychologically lifting rather than sitting back waiting to recoup losses.It would obviously help to average too. You'd be back in the driving seat..very important.
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