Possible merger / takeover with SUN?, page-20

Headlines on Big Charts Market Watch web page -  " Panic like buying in the stock market took hold as the Dow surged about 750 points on Friday" end of quote. Well folks the doomsayers tell all those who will listen to sell at the bottom and the supreme optimists tell the pundits to buy at the top when investors should be doing the exact opposite. For my mind we are seeing signs that a bottom might be forming in the market so its time to add to your positions selectively in case we are wrong. Bank shares will be sort after by retirees for their dividends (I fall into that category) even if BS gets his way with Labor's franking credit policy. Where else can an investor get a 8% yield that is relatively safe and consistent. The gurus have not thought this one through.

Self funded retirees, pensioners and low income earners who have funds to invest need dividends to sustain themselves or else they will gravitate to Centrelink and rely more on the public purse. Our banking system is the envy of the world and despite the socialists best efforts to tear it apart it is proving resilient. Once the who har of the RC has been dealt with and some water flowed under the bridge, bank lending approvals will increase and house prices stabilize. House prices in SE Qld & northern rivers of NSW where I live are stable as Sydney siders can sell then buy up here with a nice pile of cash left over to invest. Byron Bay is still setting record property prices in the millions of dollar category. Yes there is life outside Sydney & Melbourne folks. Try it - you might like it !

The smaller banks might have more upside potential than their bigger counter parts. At Friday's prices BOQ is a must have in my portfolio. There are a number of LICS listed on the ASX that invest in high dividend shares and pay up to 10% dividend. Such LICS smooth out the stock picking process as you can leave it to the so called "experts". So there you have it..................a diversified portfolio of Banks then throw some resources in the mix such as S32 for good measure. Plenty of stocks to pick from, buy low sell high. We are not in GFC territory so this might be as good as it gets. All in my opinion and not investment advice. DYOR.