Contrarian
Great to be one but whether I am successful is a different story.
I put a low price for ANZ at 28.01 and WBC at 31.01 and I collected the small parcels of these bank shares. At the time when I put in the bid, the share price was much higher so I wasn't expecting to gain any. Nothing seems to be changing in Australia. And really nothing major seems to be happening around the world that I don't know of.
The closing price was 1% higher so someone has sold off bank shares too low. However, if Wall Street continues with another major sell off, then I am the laughing stock :-(
My question has been... How much lower can bank shares go when it is still making money?
posted by Club Mulgoa @ 3:01 AM
2 Comments:
The price dipped yesterday but it has risen today to near where I bought those two parcels of bank shares. The economy in Australia has not altered dramatically and in fact, the USA economy is improving. The CCP will be in turmoil if the economy stalls badly... and it has a huge reserve of cash. Hence I bought another parcel of WBC at 30.01 early yesterday but it fell lower. All is well today... In fact, I was hoping to pick up more bank shares if they continue to fall in price.
The world did not changed on those days that the markets around the world plunged. So I topped up small parcels of ANZ and WBC shares. I felt stupid for a while as the markets continued to fall and I continue to know not why. ANZ was bought at 28.01 and WBC were bought at 30.01 and 31.01 so I am laughing all the way to the bank.
However, it is too early to laugh! The volatility is still there. But as long as the money I spent on the bank shares earn more than interest form depositing it into the bank, I am happy.
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