I have picked up a sizeable position of around 7-Figures in the 3 local banks over the past few years, as I felt that they were undervalued for such well managed companies. Dividend yields have also been comparable to reits, plus the business model of banks are proven historically and simple to understand. Banks risk rating of AA (low risk) also beats BBB (medium risk) for most reits by at least 2 notches
Over the past year, the prices of local banks have risen 40%+ considerably to all time highs. Today, the prices of all 3 banks have also risen over 2%. While the fundamentals of banks remain solid, should I take some profit of the $300K so far? š
There seems more room for upside though, with good volumes and there's really nothing else much to buy to replace these banks. With Trump taking office in less than 2 weeks, stock markets will be more volatile, as trade wars might be looming. There are really not much places for money to hide nowadays!
Disclaimer: This blog is provided for education/information purposes and should not be used as an enticement to invest in any financial products
Press on Financial Warrior, YOU Mighty Man of Valour!
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Disclaimer: This blog is provided for education/information purposes and should not be used as an enticement to invest in any financial products
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