BANKING SECTOR AS A MINEFIELD

Banking sector has now become the new minefield, navigating through the stocks there will require tact and knowledge. One will not forget in a hurry the wonders of Sterling bank abracadabra, or the banks which their stock prices have fallen below the PO price, the ones that has foreign investment exposure, the ones with the rumour of illiquidity of funds, the ones that has lost all ideas of how to modernize its comatose service delivery, the ones with cowboys as helmsmen, the ones perpetually seeking merger partners.

These and many more reasons should make one to do more that the usual due diligence before buying bank stocks, to avoid financial amputation.

My major worry is that the banks are the most capitalized companies on the NSE, and by extension the sector which will cause the biggest trouble if they fall, they may drag everything down in their wake, like a Tsunami sweeping everything it engulfed back into the ocean.