Is it time to get on the banks?

Interest rates were also a lot higher and helped soften rhe blow as they kept on going down
It ain't gonna happen this time.
In fact more interest rate cuts are going to really hurt banks as their margins get hammered.

 

Nope, I have a smattering of CBA shares held for ages that are set on DRP, they just tick along in the background, TBH I hardly look at them, though I have noted the $ sign next to them saying dividends (DRP in this case) due end of march

 

@Brisbane04 did you end up buying anything? Still a decrease since you posted.
I'm holding out to see where it all goes.. have been eyeing off a few shares for a while.

 

WBC is starting to come into the price range it was around the GFC and with what's happening in open markets now Friday the 13TH looks like it will be the same..imho..

 

Westpac has broken through its long term up trend and looks to be falling to the 61.8% Fib of ~$15.09. That should be a strong support level and should bring it back to GFC level lows.

NAB seems to be following the same pattern, however CBA is not even close to its GFC level lows.


CBA chart is looking better, long term uptrend is still in tact as it approaches its $56 support line.

 

What if rates go negative, will that have a similar effect?

 

Yes I did bought 400 shares at the $21 mark

 

The way it works is investors chasing ever riskier investments to get a higher return,and some funds will not achieve adequate returns to cover outstanding liabilities as this is only the start..

 

So will bank profits be hurt if they go negative?

 

Only my simple opinion but negative rates are another disaster for the entire world lets just look at $2 quadrillion debt and liabilities and unfunded liabilities which run above $300 trillion globally and gross derivatives of $1.5 quadrillion will may turn into real debt as chained linked fall then the debt and liabilities may may well double..

With Australian Banks as one makes up over 60 percent of my entire stand-alone long term set-up from
experience yes it will hammer the price down but from what i have experience several times and this will be no different the div's still keep turning up in the accounts ..

 

US interviews suggest they will not go negative as they have seen the euro countries do it and it hasnt helped it just made things worse. We may follow that attitude....or not

 

Several of the Banks are all starting to go into the GFC range,only one seems to be holding even with 30% less plus from the few weeks ago ..

 

But how low can they go?

 

Wow!

 

Highly unlikely but $0 is the lowest lol

However, Lehman Brothers was $60BN market cap in 2007, Westpac is ~$60BN market cap today.

 

Westpac today confirmed that it has been served with a class action by Johnson Winter & Slattery on behalf of certain shareholders who acquired an interest in Westpac securities or equity swap confirmations between 16 December 2013 and 19 November 2019 (inclusive).

So, 11.3% drop in the first hour of trading.

NAB is doing even worse!

 

Blown right through 61.8% level, next stop ~$14.50

 

Skater,i think it's too early to tell,but just a quick look at some of the order,s inline for the next month and some hope-fulls have Nab at $8-50 Boq at $4-25 and Cba at $30-00 i'm not saying that any of those orders will go too settlement stage but that's what some are thinking ..
imho..

 

That's crazy, but was really the question I was asking. Seeing the very low numbers today, it's very tempting to jump in.....but I honestly think it's going to go much lower.

 

CBA $58.55
WBC $15.73