MR-from-NG wrote:Do we have a financial wizard on CF? With the latest developments would you say share prices will rise or will they tumble further. The market closed at 42p on Friday.
In my humble opinion, all European, American and Asian banks should be avoided until such a time as their entire management groups and boards are relieved of their duties and forbidden from ever working in publicly traded firms again.
Also, if the affected banks are not nationalized (at least temporarily) so that their toxic assets can be dispatched in an orderly fashion and re-privatized, they will function as zombie banks and will not be investable for dozens of years. At least the British are doing the right thing by nationalizing Lloyds. On this side of the pond, the government is doing a horrendous job of dealing with the credit crunch. They've put in over 10X Citibank's market value, and only have some 36% of its shares to show for it. This type of rank stupidity can only exacerbate the problems in the short run, and can make it excruciatingly difficult to fix when people realize that they've screwed up.
If you don't want to sit in cash, then consider consumer staples, or maybe pawn brokers.
