Yeah....but the banks have proven through the GFC that they can recover quite rapidly through down times. The amount of money they still make, even after all these negative situations, is what actually keeps them around the mark for investors.
The Wespac SP has gone up nearly 10% over the last 2 weeks while I've been reading these doomsday posts. Of course now it is only natural that the SP may come back a tad as it always does, before it proceeds upwards again.
Just one more thing. The bank won't give the average Joe a loan without adequate security. They'll lend out 70 - 75% of the valuation of the property. A valuation that is always under what the going rate might actually be. They cover their butts. The real worry is with commercial loans but that has even tightened up since the GFC.
If one has their money in a bank stock for the long term, then it's not really too much to worry about but if one is a trader & needs to get their money out in the short term, then of course it is risky. But that is also the case with any of the top 20 stocks on the ASX.
I like WBC the best of all the banks.
WBC Price at posting:
$24.41 Sentiment: None Disclosure: Held
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