Is the Time Right to Invest in UK Banking Shares?



The fall from grace has been quite dramatic, the share prices, on average, have dropped by fifty percent in the last years, is it therefore time to invest in the UK banking sector?

I have watched in amazement over recent weeks the massive drop in share prices of some of the banking shares in England. I have been following, as an example, the Barclays share price. I was thinking of buying some of the shares if they were to fall as low as £4 a share. They are now only a shade higher than £3. It seems as if the shares of Barclays have dropped by 3% each day for the last ten trading sessions. I have now decided to take the plunge if and when the shares fall to £2.60 a share.

Another company that is of interest to me is Lloyds TSB Group. These shares have not performed much better than Barclays and I also have decided to purchase them if they fall as low as £2.60 a share.

These trades are to be invested over the longer term. I believe there is likely to be quite a large amount of volatility for some time to come, both of the above companies share price may well drop even further than the £2.60; that is the chance you take. Surely however the share prices of both firms will be higher than £2.60 in ten years time.

These are just my thoughts and should not be seen as advice; I am not a financial adviser and am therefore not eligible to give advice.

Other banking shares that have also had a tough time in recent months include HBOS and Bank of Scotland and Alliance & Leicester. I would personally love to invest in all of these companies, if only I had the money.

As you can no doubt tell, I personally feel that the time is nearly right to start investing in some of the UK banking shares; I am certainly going to be.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!