Is it a good time to buy shares in the Royal Bank of Scotland?
Unless you are a day trader and need to make profits on a day by day basis, then there are no good or bad times to buy shares really: the key thing is that you buy them then hold onto them for a LONG time, at least 7 years (the average length of an economic cycle) if not longer. Over the long term the share market will always outperform any other investment type. RBS shares ARE very cheap right now but it will be several years at least before they really start to be worth something again, so if you can afford to wait then by all means buy some. However, you should NEVER put all your eggs in one basket with shares: always spread your investment over a number (at least 10) companies AND over a number of different sectors (e.g. banking, resources, infrastructure etc.)…that way you are cushioned from any dramatic losses and I say this regardless of the the fact that RBS may well be partly nationalised, which could be bad for shareholders (although not disastrous). RBS will NOT however go
