Thursday, 8 February 2007

HSBC in


After announcing that I was looking at a bunch of shares in a previous post and just waiting for a drop in something before moving, that movement came today.

HSBC plunged about 2% on news of enormous defaults on home loans in the US. This spelled the move for me to go in, and I got some at about £9.09, they've since recovered to £9.16 this evening so not a bad bit of dealing.

While the long term worries about loan defaults rising in America point to their housing boom having busted (why can't it happen here, so I can buy a home?), this is obviously just a blip in the monstrously big HSBC's plan to own the world. Yielding about 4%, I only need one dividend payment to put me above break even on this share purchase. I think though that HSBC will end up being a long term hold and keep me wealthy in retirement, when no doubt it will be called HSBCRBSLLOYDSTSB.