Investing in Banks

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One other advice I would give to people and that is try and forget about the price and the yield. Chuck on our Facebook group, one of, I think it was our first retired member, but he had given a pretty good description of one of the banks that he invested in. He picked it up at a historically low price and it dropped another 60% and then rebounded like a day or two later. It just shows the volatility doesn't it in that sector. And it looks like he understands that sector because he's investing in banks long before any of this, and he knows a lot about banks. But it just seems absolutely crazy. So I would say try and Forget about the

In this episode, we share our thoughts on how we decide what to buy when the market is under stress.

At the beginning of the episode, we discuss the news of the week surrounding ECB rate hike and how this has caused some fear for Irish residents due to the eviction ban being lifted at the end of the month. We also discuss Pfizer ($PFE) and their decision to spend $43 billion to acquire Seagen. Is this cash-rich company squandering money?

Dividend Updates this week include Inditex, WP Carey and Vonovia.

In the main topic, we discuss how the current situation in the financial sector is influencing what we buy.

EDGI key takeaways include:

Avoid the blast zone at all times! You don’t need to be a hero
Look for high-quality stocks unrelated to the blast zone. However, often they hardly correct. Point in case: Texas Instruments, LVMH
However, insurance companies might still be worth considering. However, why are they dropping so much then?
Ideally, I would buy for instance Pharma stocks right now, or consumer staples
Energy is usually neither really a good idea because it’s very sensitive to consumer demand and expectations around that.
This is your time to gobble up some high-quality stocks. As an example, JNJ doesn’t look too bad at these prices.

Derek’s key takeaways include: