Most of those bad news have been facted in banks, hence they are trading at 5 - 7 P.E. I see value in banks at these prices, does not mean that this applies to everyone, others see more downward pressure on banks.
Correct Vitorc,how many times recently have we heard that all the bad news is factored in?....In Aug it will depend on the fact of whether the Reserve bank ups rates again and then what Tito says about further rate hikes....then only if inflation is held and seen to be declining that Financial and property will really take off....of course nothing wrong with a short run in the mean time as long as u are out before the next bank meeting.
Dep. My personal opinion is not to be to hasty to enter. Theres a lot of people that have already lost a lot (I think Im leading the pack) with Financials precisely on this chain of thought. Tread very careful. Heres yesterdays tech analysis from SBK: Bearish: The Banking Index may have completed its medium-term double-top pattern. It is testing the targeted support level of 25,820, and, with its mega-oversold RSI, a reversal could be underway. However, the index would have to escape its bear trend (or trade above 29,870) to confirm a strong recovery (but, movement above 28,160 is positive). Thereafter, we would foresee upside to the 34,850 resistance level, with further surging to the 37,365 mark which is also the resistance trendline (previously known as the support trendline) of its primary bull trend. NOTE: Failing to escape its bear trend would bring breaching the 25,820 low into sight. Next support thereafter would be at 20,830. We recommend investors stay short, but close the short position upon a positive break-out. Support level: 25,820 (followed by the 20,830 level) Resistance level: 29,870 (followed by the 34,850 level)