Banks represent potential short-term trading opportunities
Despite banks looking like they are likely to decline in the market for the short-term, there are “shares of interest” within the banking sector that represent short-term trading opportunities, predicts Wealth Within chief analyst Dale Gillham.
In particular, Gillham noted Macquarie, Westpac and St George as potentially representing trading opportunities.
Gillham said while Macquarie and St George were the top two performing banks in the past decade, they move quickly and adapt to the times, and are likely to prove resilient and regain some of the lost ground of the past year.
Gillham also anticipates that interest rates will continue to fall most of this year to its eventual bottom probably in the third quarter of 2009.
Moving into 2010, it is expected that interest rates will start to rise slightly, therefore locking in interest rates would be advantageous, Gillham said.
He said locking in at a target rate of around 5 per cent will likely reap benefits over the coming three to five years.
AUTHOR
Corrina Jack
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
