Monday September 22, 2014


Video Postcard #81 – Reflections on the summer at the Greek Hovel
The skies darken over the Greek Hovel as lovely Eleni and the rest of Kambos prepares for winter
This time it really WAS a snake encountered at the Greek Hovel

PERSONAL, UNDILUTED VIEWS FROM TOM WINNIFRITH

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Guest Post: Robert Sutherland Smith on Barclays

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- Tom Winnifrith

Robert Sutherland Smith started his City career the year before I was born. He is, I think, 157 years old. He and I have worked together for almost eight years. at t1ps He is my friend and he is a very funny and intelligent chap. He is now branching out to celenrate his 158th by doing some freelance writing over at TradingResearchPoint on FTSE 350 Income stocks. He is a great one for focussing on yield. He is also going to do a monthly column for me on this blog on the subject that really interests him, life on Hampstead Heath. I am sure we all look forward to “Pond Life.” RSS kicks off with his take on Barclays Bank and those wicked banksters.

Because the yield is too low for a bank (in historic terms), Barclays Bank (BARC)shares are clearly viewed by the market as a ‘momentum’ stock; the elementary investment principle being, that because the shares are going up, buy some more? So good so far as it goes; but an increasingly insufficient justification as a share price rises, further discounting whatever it is the future holds. As the late, great lamented philosopher, Sam Goldwyn, taught us! ’Never make forecasts – particularly about the future!’ Had he had been alive to run the Federal Reserve Bank in the in the 1990s and not a picture studio, we might have avoided a lot of trouble.

The possibilities for banks and the banking model generally, have been given a boost with the latest results and share price performance of the Bank of America. Having been in a dreadful condition, BoA has just proved itself the best performing US bank in terms of an annual share price rise – up116% over one year

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