Would now be as good a time as any to buy bank stks
Assuming one has 30% of portfolio in cash of greater than 50,000 cash
Our canadian banks have never failed to pay a dividend since the depression and even during the great depression
At todays stk value our bank dividend is aprox 7%
Not knowing where the bottom is, one would buy in small amounts, over time
The trick is to not run out of money before the bottom happens
However, asssuming the banks still pay a dividend, what does it matter the asset or stk value
7% beats any other investment other than a straight short of stks or the index
We are not professional traders thus taking a short position could be dangerous
We assume banks protffolio of non performing loans will increase
We assume if int goes below 0% margins on loans will be less
However, in Canada, if the banks broke traddition and did not pay a dividend then our system is truly broken
What say you about buying bank stks in small increments
We are looking at the int or dividend more so than stk value
IMHO, it is too early. Learned that lesson in '09. There will be plenty of time to buy.