scrumpyjack wrote:Quite. Though bank shares have bounced back somewhat, in the context of a look at the longer term chart of bank shares, it is distinctly a 'dead cat' bounce!
Whilst I don't intend to sell (that's a triumph of hope over experience), to me they are uninvestable as a new investment as they are so much of the mercy of political factors and greedy incompetent management.
I would disagree about "dead cat" that tends to be a market response where a stock may or may not have been oversold and there is then a bounce in the following days.
What we have is a changed environment moving on from Covid towards some certainty that Covid will come to an end. This combines with quarterly reports which if they say anything say that banks will not need more capital. That is perhaps the key to investment.
I don't tend to share your criticism more generally of management and sovereign risk is always a factor that needs consideration for any business anywhere.
Some management mishandle businesses and some times they end up with flawed remuneration packages that make them do things which are not in the interests of the business or any of its stakeholders apart from senior management. However, that is not more generally a problem.
The banks have ticked off a bit this week (and are still ticking down)because of the greater probability of no deal (which is currently the favourite in betting markets). However, I think the risk of no deal was factored in from 2016 onwards which is one thing that has held back UK bank share prices.
Hence if you see banks as something which should recover and then pay a reasonable dividend in say a year I think that is an investment proposition. Then again I have been buying the banks at lower prices than they currently are.