Does anybody have a view on the banking sector as it stands right now?

[#1]

hi everyone i noticed a huge head and shoulders is forming on the banking index. even individual banking shares have huge h+s brewing on their charts!! i was wondering what everyone else thinks about the banks currently cos i hear alot of people/freinds/traders are going long on the banks but they always complain that they are loosing money -- hitting thier stops or getting clocked out due to volitility -- so it obviuosly crazy to belive the banks are a good call cos clearly their still under alot of pressure? Any comments?

[#2]

Warren Buffet bought $5Bn of Goldmansax, so no, if the worlds best knows something, then perhaps now is the time to buy the banks. Where to start? not familiar lately with this sector

[doomsdayza]

Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years, which could give it a roughly 9 percent stake in Goldman. Last week, Goldman said it averaged 448.3 million common shares in the quarter ended Aug 29. - cnbc.com Now if that is not a plea for help then I don't know what is...

[#4]

I don't think that the worlds king of investments, would make a bad decision with this, he must know something, hear this: Goldman Sachs also expects a 30% increase in stocks before year end. Just think, The markets have just halved, in a very short time, banks were knocked out in the US, and 700bn in tax payers money is just about to get into the markets. where on earth has all the money gone, valuations are very attractive, and growth is expected to impress again in '09. Expect the bull to wake when some US plan is accepted

[doomsdayza]

Ye but how sweet is that deal? It's one you couldn't refuse.

[HungryPunter]

Sector rotation is at play. My long views include: GFU and AGL. My shorts; TON; SHF; PGR; MNP; BAW; With my favourite short being BAW. Hope the future shows I am correct as I am most definately punting in these directions. Regards Only my view, review with your broker. Deon - Hungry Punter

[#7]

You guys do know that buffet has been plenty wrong in the past... jus recently he sold out of PetroChina cos oil price came down -- that was a $5bn purchase undone. The deal for the rescue has not been approved yet... may not be approved at all. while our banks are not exposed to the credit crisis, the bear market is stil not over and with the US and UK teeterin on a recession there is plenty bad stuff still to go down. I agree with shorts you mention'd especially BAW. definitly the way to go

[Tom168]

i totally agree with iceman55!!!

[#9]

Guys did you see the Details of the warren buffet goldmansachs deal... the way i see it he is just hedging his options... 10% Div yield on prefered stock - Means that he has just given the bank a loan...then an option to convert to stock in 5 years time at todays prices... ....So he only takes ownership of shares if we make it through this mess... If you look at the deal closley he basically has taken advantage of the cash strapped banks by offering them a loan on his terms. the banks, being desperatley in need of money, will agree to anything at this stage. should the banks survive and start to thrive he converts to common stock at Todays prices. if banks go under he doesnt have to convert so he can just leave his investment as prefs and get a fat dividend.

[doomsdayza]

You can be my wingman anytime. Sorry, couldn't resist. Queue Top Gun theme music... hehe.

[louisg]

Warren Buffett has always been a BUSINESSMAN above all else. He may buy and sell shares but he is first and foremost an astute businessman. "Investing is most intelligent, when it is most businesslike." - Ben Graham. These are the nine words Buffett believes are the most important when investing.