MIDAS SHARE TIPS15 Dec 2019 14:12
Banks may be a safe investment again
Banks have been clobbered since the EU referendum result. According to research firm Edison Group, the banking sector has lost so much ground in the past three years that the shares have become significantly undervalued.
This partly reflects woes of the sector's own making, such as the never-ending PPI scandal, which cost banks more than £36billion, and other egregious instances of customer mistreatment.
But banks have suffered from concerns about the state of the economy. When growth is sluggish, businesses and consumers are less inclined to borrow, more debts default and there is less trading and foreign exchange activity.
Very low interest rates can reduce the profit banks make on money lent. A more robust and settled economy should see bank shares in recovery mode – and the signs were there for all to see on Friday, as bank stocks rose across the board.
https://www.google.com/amp/s/www.thisismoney.co.uk/money/investing/article-7792633/amp/MIDAS-SHARE-TIPS-sectors-stocks-set-benefit-new-Government.html