You consider the banks are a sell, and the idea that they are currently heading down seems to agree with that thinking. However, there is data that basically rejects that assessment: just a couple of years ago, CBA shares dropped to $25 yet last March they were in excess of $96, therefore it would seem that the best advice would be to sell - but why not wait until they revive, and then to sell? Sure, you can sell now and wait until they go further - but what if they don't, it's always a cycle anyway?

Dividend payments may have no bearing on your view, but a lot of retirees buy, and rely on, shares for the dividend income regardless of price. Yes, share prices fall, but they go up again and if the banks go bust then the country has gone bankrupt as well . . . regardless of how much you may have in a bank account, it's going to be worthless.

Just a thought.

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Remember though that the government guarantees deposits of up to $250k per institution, so if there is a default you should be protected as a depositor. There is no such guarantee on share prices and although like you said, they usually go up again at some stage, it doesn't always happen in the time frame that you want - especially if you are a retired person. Likewise there is also no guarantee of future dividend payments. You should never buy shares based on dividends alone " regardless of price" as you mentioned, despite the temptation to increase your income. I think preservation of capital is more important at the moment.

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Hi Brad. Yes, I tend to agree, although I did say: "but a lot of retirees buy, and rely on, shares for the dividend income regardless of price," not all retirees. I did buy CBA 12 years ago because of the needed divided income. Preservation of capital, where it is certainly important, at any time of buying shares, that thought would have to have been a hindsight judgement, However, winding back the clock is not easy for retirees like myself.

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