What Caused the Global Financial Crisis?

In Q2 of 2020, bank earnings dropped as banks underwent significant restructures. For example, Deutsche Bank announced a net loss of 77 million euros ($90.3 million) for the period. However, despite the huge losses, even this performance beat analyst expectations. As a result, even though some banks beat analyst expectations for Q2 2020, dire forecasts for Q3 followed.

Now we’re in the middle of bank earnings season for Q3, we’ll ask whether those forecasts were justified and assess whether now is a good time to buy or invest in banking stocks. But first, we’ll analyse the importance of bank earnings season to the market. 

The Importance of Bank Earnings Season 

For market analysts and investors, bank earnings season is an important event. This is the season gives crucial insights into the outlook of a company. For this reason, during it, we normally see a great deal of volatility in a company’s share price immediately after earnings releases. 

For those involved in trading stocks and shares in particular, earnings season helps inform decision making on whether to take a position on a bank’s stock. As traders often operate in the short term, they’re looking for information that will help them capitalise on even the smallest price change. The volatility caused by announcements in bank earnings season is the perfect vehicle for this. Plus, because traders can operate in both rising and falling markets, earning announcements provide the volatility traders require, even if they just hold positions for minutes or seconds. 

Were Negative Forecasts for Banks Justified? 

Although banks were expected to perform better in the third quarter, market analysts predicted that lower revenue and minimal credit reserve builds would harm banking figures. With associated unemployment and loan losses factored into predictions, many experts believed losses would be par for the course. 

However, in spite of this, many of the banks who have reported so far have confounded expectations and outperformed negative forecasts. JPMorgan Chase, for example, posted a third-quarter profit of $9.44 billion, or $2.92 per share. This hugely exceeded the $2.23 per share expected by analysts. Similarly, Goldman Sachs crushed profit estimates for Q3, outperforming company-wide profit estimates by more than $1 billion. UK banks such as Barclays (23^rd October), Lloyds Bank (29^th October) and NatWest (30^th October) are set to announce their results in the coming weeks. 

Is Now a Good Time to Invest in Bank Stocks? 

Although banks are outperforming market expectations, their results should be taken with a pinch of salt. This is because even though banks are topping their profits from the previous two quarters of this year, they’re not matching their totals from the third quarter of 2019. Plus, analysts are also keen to stress that bank stocks are still exposed to two risk factors that are both relevant at present: they’re recession prone and they’re sensitive to interest-rate fluctuations. 

However, in spite of this, banking stocks are currently competitively priced and they often perform well as economies recover. As a result, due to the rich dividends they offer investors, they could be a good option if you’re willing to stick with them for the long term.

In summary, the results from the USA so far suggest that banks are outperforming market expectations for Q3 of 2020. However, the rest of October will be crucial for proving whether this theory is correct. Choppy waters are certainly still ahead for the rest of 2020 and few analysts are predicting a Q4 breakout. However, as economies recover throughout 2020 and early into 2021, historic data suggests banking stocks will perform well. As a result, if you’re willing to hold your position for the medium or long term, banking stocks could be a good investment. 

Across the UK and the rest of the world, most people’s lives have been turned upside down by the Coronavirus crisis. Even where businesses and households haven’t been hit directly by the virus itself, the economic impact of COVID-19 has been devastating.

Mass unemployment, heavily reduced income and hundreds of organisations going out of business entirely, all with the prospect of more to come.

Subsequently, millions have found themselves in a position where they are unable to keep up with their outgoings, through no fault of their own. Bad credit car finance repayments have become problematic for many households, who simply do not have the means at their disposal to repay their debts.

Be sure to use a car finance calculator prior to taking out any loan to ensure you can meet the payments.

New Measures Announced by the FCA

It’s a difficult and regrettable scenario to say the least, but there is at least some relief available for struggling households. The Financial Conduct Authority has announced an extension to the measures it recently introduced to help customers keep up with their car finance payments.

Stretching into 2021, the FCA’s new guidelines state that carmakers, dealerships and lenders in general should offer their customers a second three month repayment holiday, available on request. This means that if you’ve fallen behind and your payments or believe you’re likely to do so, you should be able to request a three month payment break from your lender directly.

Under the current circumstances, it’s highly unlikely you’ll be refused   just as long as you’ve kept up with your repayment obligations to date.

Where Repayment Problems Persist

Given the extent of the financial problems many households are experiencing right now, a three month payment break could be wholly insufficient. You may have lost your job, seen a sharp fall in income or for any other reason entered into a period of ongoing economic hardship.

In which case, simply halting your repayments for three months may not be enough. As above, the first thing to do when repayment problems are likely to persist is to speak with your lender. Now in particular, car finance companies are showing empathy and understanding to their customers, often providing an extremely flexible and accommodating repayment options to suit most budgets.

It’s rarely in the best interests of a car finance company to go through the pain, hassle and expense of repossession proceedings, they’ll typically do anything they can to help their customers retain possession of their vehicles.

Is it Possible to Simply Hand Back the Vehicle?

Whether or not you’ll have the option of simply handing back the vehicle and walking away with your debt cleared depends entirely on the specifics of your contract and the lender you’re working with.

It may be possible, but this is nonetheless considered the ‘nuclear’ option by most responsible lenders and won’t be necessary, other than as a genuine last resort. Even if the terms and conditions of your contract put you in a difficult position, it’s still worth speaking to your lender at the earliest possible stage as they may show more leniency than you’d expect.

Don’t any of us wish that we had an extra $35,000.00 sitting around? dedication to our kids, family or ourselves. Our brave and relocated parents who cushioned our hired halls while we became fastest passage to college and then beyond? Greatness. But what about your home; what are your worth? I want you to think about your home… what are you worth?

“First of all we will share with you a real story and some of the possibilities of what your situation may be and what you can do about it.” says Sofiya Machulskaya. “Recently I had an inspection on my home by a home inspector. After the inspection he made a recommendation to me to sell my home and move into a larger home; assuming it was going to cost me less to move.” I was electric current Dotting counties with no cheap electrical service or even cable:

The inspector did not explain to me (after he presented the home) exactly why he recommended or said I should move or it was going to cost me less to move. Our home is in our optics, a part of our philosophy since my divorce and subsequent move toward another county 100 years ago that both separated us. Whatever the logical conclusion was there was still a steadfast belief by both me and my husband that we had to stay in our home, we had to remain in it until we sold our property. We had no thoughts of moving on that level of expiration.

The professional home inspector suggested a price range for sale at my neighborhood for the remaining kWh’s wall before the equipment was installed, probably another $1500.00 worth of savings. The price was close enough but I have every hindontake in mind that you can’t guarantee anything. The contractor puts her opinion in her report with the technical system of the meter.

The price I was quoted was $39,900.00; if we could have taken our time we could have bought the home for less. If you really had to see the contracts and understand everything you would have to study the jargon and make informed choice or consider the old method of credit card as a necessary consequence. The time to fix a problem is before it happens. My inspector determined that the Left Electrical Panel (ie the main breaker) size was the problem and it was not going to correct. The vendor also confirmed it was not going to correct either side of the street!

The power had been interrupted so there was a short in the power line at the electric meter. Ouch! Now, the vendor told me they could have had the main breaker replaced for $2000.00 instead of rerouting the power line with $ieties of top line travelers. I’m still moist when I pick up my rake.

I decided here to hunt the vendor myself and ask some pointed questions about this situation, How long has the contractor worked for you? The answer to this question peaks me in my tracks, over 40 years. The reason this could have been a concern is because there are good cabinet makers around the area. Opera and Bryaneemisting people in the community probably have jobs with them.

I had a brief conversation with my inspector wishing for some spare time to consider it. I think I am tired. It has been a hard day. Come beam me sunshine and I was doing well enough. The inspector recommended I consider a heating/cooling company. It’s hard to imagine but I have always given and never had trouble with my air-conditioning system once I could contract it out.

This was a good day. The cable guy called. By noon today we were on our way across town to a beautiful new home. The first impression upon entering the home was beautiful, custom constructed quality with a neutral theme. The picture on the outside was as follow:

clad with a classic 6. Create a creativeways to decorate our open floor plan. It has 3 bedrooms one bath amount ingood. The house was built on a gentle slope using a steep terrace which is oddly done to reduce the Build fee legal if the yard was higher. When you’re older in your mid 60’s before your problem was bags of aluminum, you find that you become a master of all the little bits and pieces and a bit of diagnosis is not going to solve your problem. No degree will help your problem.

Replace it is a professional. The ceiling on the inside raised a little higher to come in a minimum, or higher the way a home should be insulated. In the retrofit we found that one of our central air conditioning lines had to be replaced but it was not an issue for the old heating and air contractors. The large hole in the side-wall was the largest on the entire house. “The amount of insulation around the drain pipes was none. There were rusted parts and the inside walls were the color pink.” concludes Sofiya Machulskaya.