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My thinking is the BoE will be comfortable with a hike this week. What happens long term who knows but the waters are calm enough for them to move ahead with the plan. Hopefully that bodes well for the share price recovery
Yep they will be with today's inflation figs out.
They have to raise 0.5 tomorrow surely? The BoE are sleepwalking into ever worse inflation.
they need to... they probably need to raise by more... but they wont
The US Fed Reserve have just raised interest rates by 25BP.
This says to me that they believe that getting inflation down is a greater priority than ensuring that the banking system suffers no more SVB type implosions. Or it could be that they think that the US banking system has sufficient capital reserves and that SVB etc were outliers caused by poor management decisions rather than by anything inherently wrong in the banking system itself.
Financials have tanked again in US following Powell and Yellen comments. Could be another grim morning tomorrow.
Buy on any falls, fed has signalled that rate hikes will be limited. Bonds will start to rally which will reduce the pressure on banks. Financials are a bargain at the moment but spread the risk. Gold will also get a boost GLA
price usually (always?) take after the rate rises.
Recovers in ~a week
Big sell off in last 30 mins, I thought I bought some bargains the other day lol. I think BOE won't go more than 25bpts but who knows they've consistently made a mess of it. Maybe Kwasi K is on the board now
i wouldnt get to excited, yes the SP looks cheap but it can go a lot lower, sentiment is negative towards banks atm, TA looks bearish as well, dont forget to take your profit because from what i see and hear we are in for a lengthy period of high volatility.
Everyone knows increases take about 6 month's to have an effect, we are now feeling the first increases so more pain to come. Central banks should have paused
Newdealz I understand what you're saying and I too think it could all go a lot lower, or maybe not hence the volatility. I'm a long term invester and opportunities like this don't come along very often. I'm averaging in positions in financials banks and life assurance and forgetting for a few years. I did the same a few years back when commodities got hit and you could pick the likes of GLEN for under £1. Don't get me wrong I've made plenty of bad purchases but diversification is an insurance
@Clark - you can make a packet on these swings, or sit it out as you say, i need to be proactive with my trading these days as doing nothing is not an option now having learned from experience, this is more down to my mind set and trading style and risk appetite.
Im heavily into GOLD atm, i could be tempted back here but the price would have to be cheaper as im going defensive for a bit to see how this plays out, things will look a bit different in a few months....
GLEN (and similar) benefited from the disgraceful QE pump and lack of sensible interest rate policies that we are going to be paying for for many more years than we gained from it. Agree as to the point if you were referring to the 2015 commodities crash though. That was a golden opportunity not driven by central bank juice, as such. FWIW, I think commodity stocks are going to be even more desirable in the next few years; gold, silver, copper and uranium in particular, along with rare earth metals. Not because said commodities will significantly increase in value, but because our fiat currencies are going to continue to depreciate significantly. The latest CPI print is a case in point. And that is a doctored number anyway. Shadow Stats is worth a read, if you are so inclined. Too much debt, interest rates already putting the banking system in peril and inflation untamed. Nowhere for the BoE to go. High inflation for years and years, or a Depression. All IMO of course and I hope to be wrong. Good evening all.
See what tomorrow brings but looks like last few days gains are back imo. It doesn’t matter that system is different to US as we don’t have the balls to value as stand alone. Us takes a kick in and we just follow. I don’t blame companies for listing in US you may as well get the bigger valuation. Bank equity is thin and funds move fast and share holders are first to feel the pain!
Its a game, what would have happened if they didn’t raise? what would have happen if they raised it 0.50?, the same, wake up and smell the coffee and stop thinking it was this, it was that. it’s a script which has already been written.
Another 14M shares removed from circulation today that were purchased yesterday. Doesnt sound much when you see that they have over 15,000 M in circulation. However when you see that since 16th Feb, 95M have already been removed from circulation its bound to start having a snowball effect before long.
Also nice to see they are producing sufficient income to be able to wipe out this stock while continuing to pay stock dividends.
For me this signals steady accumulation is in order.
@Belgrano - if Barcs has seen the bottom it will almost certainly return to that number again, i see the FTSE going down now over weeks\ months to low 7000 area minimum possible low 6000, as interest rate measures start to kick in, we have just made a new high in a world crisis and i only saw that as a move to suck lots of buyers into the market and get locked in, i said it a year ago on the POLY board as you might remember and Carmichael is right its a game and previous experience told me thats how they will play it. This is all imo but Banks for me are trade in and out on the swings now, FTSE 100 will continue to make bear rallies and drops, all news dependant now and if the war ends and peace comes soon it might save us but im not holding my breath (yet)
@belgrano - Something to remember is Employee share schemes will be issued and these are added back to the amount in circulation.
Razz,
At nowhere near the rate of buybacks and share schemes would happen regardless of buybacks.
Spot on One Long Runner. Just didnt want Belgrano to think it was only a decreasing number.