RE: Trump effect on stockmarket31 May 2019 11:04
Be that as it may. Brexit also has an impact on the Lloy SP but any discussion that rebuts the Remain perspective ie opposes the view spouted by CC/JF etc is deemed to be of a political nature and as such is not permitted. Look at it in a different way, CC is not getting paid now so maybe he/she will move on. Lloy unreasonably perhaps become a proxy for the UK economy since it was neutered by the FSA/FCA to "punish" it and its shareholders for the financial crisis. The perception of where our UK economy is heading over the next 12 months therefore has a direct impact on the Lloy SP. Clearly the perception is likely to be wrong as it has been since the Referendum in 2016 as has been demonstrated clearly in the Lloy earnings progression, its dividend policy and even the much maligned buy-back. I would contest that Armageddon s priced into the Lloy SP as the dire projections by the architects of Project Fear have failed to materialise and our economy is sailing along quite reasonably despite the modest headwinds experienced in the housing market wrt prices in London and the SE. Mortgage lending, new and remortgages are strong according tis the latest figures as house buyers are getting tired of waiting for Brexit. lloy NIMs are holding up well which is really all we need to be concerned about. As ever though in the short term MSM's twisted version of what is right for our economy is getting in the way of the good story that is Lloy. earnings up, Lending up, Nims's stable to up, Mortgage defaults stable and manageable, end of PPI, a rock solid balance sheet and increasingly over-capitalised despite the BOE's best efforts to push capital buffers to ever higher levels to better reflect increasingly ludicrous future economic scenarios.