Bank stocks worth while?

hello i see the bank stocks in us and canada give some good dividends but are they similar to likes of at&t or realty income they dont move very much , very slow growth…??? but perhaps these are more know as dividend stocks where i might put profits into because of there divids. what do you think of banking stocks ? :thinking:

Buffett’s a big BIG fan of BAC. That should tell you a lot about that particular stock.

I see potential, but I’m not buying. See higher growth in TSLA and other industries.

Not even ten years of consecutive growth will justify Tesla price as it is inflated now.
However, banks are income stocks not growth stocks, they are supposed to have a slow growth and a stream of stable income from dividends.

Oh yes you are right, I didn’t see that :wink:

So even Bank topics get turned into topic about TSLA.

Anyway @ OT, personally avoid banking sector when I don’t see interest rates going above 0% soon. If EU is hint at what will happen in US then decade+ of 0% rates.

If I had to pick, probably BNS/TD from Canada :canada:, JPM from US :us:.

You could always invest in one of the new challenger Fin Tech banks - Starling apparently was the first to break even this year, Monzo and Revolut still struggling to get there. You would need to look at exposure indirectly though through an investment trust.

Yes I think your right Vedran, JPM seem a good US choice over others due to more investment side to their income. I wonder too if with low interest rates (bad for banks as you say) that in some ways is bullish for house-builders as it means people can still afford to buy houses above their means. Perhaps banks/house-builders (at least in UK) are almost a hedge against each other? Thoughts?

Lower interest rates don’t naturally mean end of world for banks, but it kills their margins. We can see from EU example, how their growth is mutilated.

But then again I wouldn’t compare EU vs US, so there is yet hope for US.

Naturally few REIT sectors are the beneficiaries of low rates. Apartments/Office/NetLease/Retail(mall/SC).
Which are already severely hit by covid19.

I am not proficient to comment UK, but I will definitely buy US quality REITs. (In addition to what I have)

Perhaps they would not be a great hedge as they rely on each other for funding.

Building permits may be a good leading indicator to see the banks willingness to lend out capital.
Likewise, builders will be taking out loans for land/materials - so again, maybe not a picture perfect hedge.

useful link :

Surely if interest rates are low then for house-builders borrowing to finance buying land etc they can finance that a lot cheaper with low rates. Also in the UK house-builders benefit heavily from government subsides/help house purchase through help to buy etc. I know that if banks cant/dont lend then house-builders would struggle but it feels that they can always find finance as houses need to be built in UK (always at a deficit each year).

Regarding home builders, mixed bag for me. In EU we had 0% rates for decade now, priced on real estate/apartments keep hitting all time highs.

A lot will depend on the outcome of lockdowns. How badly hit will the economy get. When you hear depression mentioned, you don’t priorities home building. Well at least in my view.

But indeed 0% rates are ideal environment for home building.

No idea what the answer is precisely, just throwing some “what-if’s” around here:

With Brexit, I could imagine a lot more vacant housing and lack of demand for new builds. Banks may even be less likely to lend out at a time like this. EU has seen record amounts of people flocking to take up residency, as seen through near doubling amounts of homes sold to ex-pats on travel firms books. Then the covid mess has caused a bit of issue for peoples income and may lead to more families living together or renting - rather than purchasing new homes.

It’s all temporary of course.

:+1: thanks vedran yep i picked those last wk.

:wink: thanks fr your reply

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thanks to all for your comments there . very helpful indeed. :+1:

Is starling going into a possible merger with jp or lloyds ??? :thinking:

Let me grab my magic 8 ball and find out…

… “try again later”…

Guess we’ll just have to wait and see.