There is a way and I shall give it to you for no charge.
I have made more money for myself (starting in 1989) and the family trading bank stocks than in anything else, for what makes the bastards so venal also gives one odds on chances to make money.
1) You can be guaranteed that they will find some way to truly screw up every 7 years or so. The reasons are now well known so repeating them is a bore.
2) You can count on governments to bail them out.
3) You can count on index tracking funds to sell the shit out of the stocks.
4) You can buy a basket secure in the knowledge that some of them will come out of the hole and make a packet for investors.
The fact that the Fed is not doing that (and the Brits are) really does suggest that perhaps the US government is rather beholden to bankers.
The only thing to remember is never to be a Sheikh. There is no such thing as a long term investment in a bank.
Wednesday, August 5, 2009
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