Trade DiaryWow what a start to the week. Today Ireland takes another plunging step into what I’m sure our children will term “The Depression”. I’m not one for doomsday scenarios but the bleak outlook for Ireland just seems to be spiralling out of control as the government stand idly by dumbfounded by the accelerating momentum.
I’m looking at the complete and utter collapse in confidence in the Irish banking system. Allied Irish Banks (AIB) is trading down 45% at 0.80 cents while Bank Of Ireland are down 35% at 0.49 cents after Goggin steps down early. This is amazing and looks like a run on the banks. I’m not sure if the ban on shorts being lifted has accelerated this but there are many people panicking now. Some of the message boards read “this is a bloodbath”, “I can’t work as the world is in meltdown outside the office”. Others apologise for offering advice “I would like to retract my advice to buy at 11 Euro”. Today is going to be a very interesting day for the government and the Irish banking system.
As I type AIB are down 50%. Carnage is the only word to describe the ensuing sell off. Thankfully I dumped a long, long time ago. So where do we go from here and are AIB and BOI the next to be nationalised as they fail to recapitalise? Interesting times ahead.
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AIB now down by 60% at 60 cent and BOI are down 40% are 30cents. This really looks like a run on the banks.
I would love to invest in an Irish Bank.
Bank of Ireland, for example at the excellent rate of 50c.
Hoping that in 5 years we will all be lauding the time that shares were so affordable.
However following Anglo Irish nationalisation I can’t invest in BOI at any price.
Assurance that BOI and others won’t be nationalised or buyback terms are needed before I would invest.
Hey guys -
pain wasn’t just confined to the Irish banks, was short HSBA
on friday and can’t believe the numbers end of trading today… and that is the biggest bank in the world. Barclays was carnage and RBS genuinely looks like it’s next in line for nationalisation. If I was Irish I would be very very worried at the Bank bailout plan being planned when the balance sheets of these banks easily dwarfs your GDP.
Bottom line – don’t fight the trend boys and girls. And PLEASE don’t think the dividends are attractive, they are a mirage. If you don’t believe me, just look at what happened to the widows and orphans funds who were long LLoyds for the consistent divd-ends paid out for years – and now they are left with nothing.
If you are annoyed at the low rate of interest your bank account is giving you – then look at the big-cap oilers IMHO.
Feel free to ignore me, but I am pointing out what has already happened to a number of investors last year.
Good luck all
J
AIB down 35% today but off the lows of 50% and trading at 0.39 cents. Bank of Ireland down 10% and trading at 0.31 cent. Both were at 0.29 at one stage. Amazing stuff.