Dod101 wrote:GoSeigen wrote:Dod101 wrote:Like everything at the moment things are changing so quickly that it is impossible to know and very difficult to speculate about what is likely to happen.
Dod
Wasn't that long ago that you were pretty sure that banks were crap and you couldn't see how they could make a profit. What has changed to quickly?
GS
If you can find that as my quote please let me see it. It does not sound like my phraseology.
Dod
I didn't quote Dod of course it was my recollection of his views, FWIW here they are in his words, from HYP practical:
Dod101 wrote:... I do not agree with GS that banks are or were a good investment for anyone not even the dedicated HYPer. With or without the intervention of the bullying PRA they have not been much of an investment since at least the financial crisis of 2008/9. I cannot see Lloyds being much good even after/if they restore their dividend. Everyone talks of a recession if not worse and for a bank totally depended on the UK economy where are the profits going to come from? HSBC is probably going to be just as bad with or without the China/Hong Kong problem. I will at least reduce my exposure but will see if the price recovers a bit first. ...
[My bold]
Dod101: as I said, you were not so circumspect about this a few months back when you argued UK banks are a bad investment, what has changed to make it "impossible to know and very difficult to speculate about what is likely to happen" at this time? Covid is better understood and coming to an end, an EU trade deal is about to be resolved and anyway no more uncertain than back then.
To me it seems that UK bank shares are available at amazing prices, their capital levels are high, their assets good quality, their banking operations conservative, they're engaging in cost-cutting and profit margins are somewhere near their lows. So: A. What's not to like? and B. What exactly is impossible to know or speculate about?
GS