fightintxag13 said:
Just curious on what the general thoughts are of this group on entering a long term position in KRE in an IRA account. Are banks done bleeding with rates having likely topped, or being another 25 points from topping? Would it be better to identify individual banks that have been beaten down but are fundamentally solid and buy them?
I've already swung WAL once and am working on re-entering with naked puts. I just got assigned TFC shares last Friday.
Let me just make sure you understand your own question by asking you a couple of questions.
1. Are regional banks healthy?
2. Is the dollar healthy?
3. Is our economy healthy enough that regional banks will get back to receiving deposits and lending money similar to the way they were before COVID?
4. With all of the potential avenues for investment that were beat down in 2022 and 2023, is this the one you think is best for a long term hold? If so, why?
If you answer to #1 is yes, can you explain why you believe that?
In my opinion, regional banking should ne for short term swings only until rates are either significantly lower or GDP is significantly higher with asset valuations matching growth in GDP and not devaluation of currency.
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- also Farmer @ Johnsongrass, TX (obviously in a worse mood)