Market Turmoil: Final RBS Topup

Buy when others are fearfull.? It was another turbulent day on the markets today and I’ve spent the last of my money on……….. yup, another tranche of RBS. At 550p it’d be rude not to. This follows my previous purchase at 610p and my long term holding in my HYP.

Although I intend to scale down my stock market holdings, todays offerings by Mr Market were too good to refuse. I don’t intend to hold todays purchase for long, but hope to sell soon assuming the volatility continues (and pick up a divi on the way).

Although I’m not a trader, I’ve concluded that if the market goes up then I will make my quick profit but if it goes down (as I fully expect) then I’m left holding a share on a PE of around 7.5 and a future yield fast approaching 7%. So, if this ‘trade’ goes against me it won’t be the end of the world, I’ll just wait around and pick up that chunky dividend until the price recovers.

On the other hand, maybe I’m getting into a game that I said I never would? But with the share bouncing around and the excellent fundamentals I think this is a risk worth taking.