Here we go again. From one day to the next, up more than 1%, down more than 1%, up more than 1%. On no real news, no change in what investors know about the bank finances, all on speculation about when the Fed will begin to wean the markets off of the flow of stimulus money. I'm just too old for this crappola, no way to figure out if or when to invest, or even in what sector, let alone which companies.
I wish I could share your optimism and faith in the ability of the Fed to fine-tune the economy and tell the markets how they SHOULD react. The Fed is converting debt to cast at a rate of $85 billion per month, and any reduction in that process is going to cause major increases in the artificially low interest rates we've enjoyed for two years. The economic recovery is fragile in the extreme, with many businesses still unwilling to hire full time employees. The uncertainty of the effect of turning off the money flow, no matter how slowly, is currently a major barrier to full recovery. I don't believe that the Fed can bring about a soft landing.
I'm tired of the hyper-volatility in the financial stocks and want the Fed to go ahead and start the tapering process that analysts keep agonizing over. We all know it's coming, and it won't be pretty, but it will get us back to fiscal reality. Time to get it over with. Let's get back to basics in this sector.
I've experimented with adjusting dividend yield for years, and I decided that 5% is as high as I can go and still sleep well. To get to 6% means find some 9-11% yields to balance the blue-chip 2-4 yields. And those high yields are high for a reason - risk. If you really need 6%, I hope you can make it work. Just pointing out that 6% is 20% higher than 5% - and that means at least 20% greater risk.
Adding to the list of reasons not to put a lot of faith in Yahoo: just noticed that they haven't reset the TIME column, still on daylight-savings time. Spring ahead, fall back. Just like buy low, sell high. What's so hard about that?
Yes, for sure, good old Sanat is the key to understanding regional bank stock performance. Thanks for bringing that to the board.
Standard & Poor's has a 12-month target price of $11, with a Buy recommendation. I still say we bounce around in a trading range until earnings show consistent increase and dividend is at least doubled. Did you mean 2014, or are you making 26 month forecasts?
Yahoo is currently telling me that my portfolios don't exist. But, if I click the "edit" button, those very same non-existent portfolios pop right up. No information, but they are there. We've come to take the internet so for granted, to assume that it will work perfectly when we click the mouse button, that failure of Yahoo to give me instantaneous, free access to the up-to-the-moment history of all the stocks I follow strikes me as just unacceptable. Imagine the day when terrorist hackers actually succeed in collapsing the system.
Looking at the 2-year RF price chart, the last few days come into perspective. Based on overly optimistic earnings predictions for the sector and for RF specifically, the price got way ahead of itself. It's come back in line with a slow return consistent with a slowly recovering economy. If I were building a position in RF, I would likely add to my holdings at today's price. I already have a position, so I'm just holding.
A few days ago I put wartdip on IGNORE, and my message board has greatly improved. What a simple solution. He joins a long list of those whose posts aren't worth the time it takes to read them.
A friend once described a guy as "if it was raining quarters, he'd have his bucket bottom side up." True for most MBAs, in my experience.
You certainly do have an amazingly high opinion of your views and your importance to this board. Perhaps if you, "sir" had devoted less time to puerile putdowns, other posters might be inclined to consider what you have to say. Your insecurity shines forth in the way you present yourself.
So you traded a regional bank for an "internet information provider" with a negative P/E. Hope it's money you can afford to lose and that you have many years to go before retirement. Good luck to you.
Got this from an article, and it makes sense. "The sector has soared over the past year on the expectation of steadily rising rates, but Fed Chairman Ben Bernanke's decision not to taper is prompting investors to take some dough off the table. After all, regional banks benefit greatly from higher rates because they charge more for loans, so the Fed's surprise move suggests the group will be posting lower profits and for longer a period of time than Wall Street had expected." So, it's not an RF thing, it's a sector thing, and for those who've been saying they're looking for an entry point --- here it is.
On 9/13 you posted that you sold F at a huge profit, planning to buy back in when it fell significantly. It was trading around $17.55 that day. Three days later, F was trading at $17.35, and you posted saying it was a HUGE buying opportunity. I know I'm old school, but most of us don't really work on $0.20 price swings - over a three-day period. For RF today, there was a dip from $9.60 to $9.55 today, so I guess you really loaded up - right? I mean for a major player like you, that should be enough of a dip to make a STRONG BUY!!!!!!!!!!!!!! I think "dip" is the appropriate term here.