Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. But at least it’s diversification.īarclays shares are down, but that puts them on a tasty valuation, in my eyes. Admittedly, economic woes aren’t restricted to these shores. And that should help protect it from UK economic troubles. Lloyds is wholly domestic, and dependent a lot on UK mortgage lending.īut Barclays is still international in its outlook, and has stuck with its investment banking business.
So I’m going for Barclays ( LSE: BARC), which has an advantage.
I said I won’t pick Lloyds, but I can’t resist choosing a bank. There could be short-term trouble ahead, but I see a long-term buy. And a fair bit of the latter is down to land prices, which also fall during property weakness.įorecasts suggest a P/E of under six, and a 9% dividend yield. So why wouldn’t it do the same should they drop again? It’s all about the difference between selling prices and build costs. Taylor Wimpey was making good profits years ago when house prices were lower. And they act as if falling prices will lose them money, and sell the shares.īut I feel more confident. Many investors appear to think that builders need rising house prices to make profits. But we’re still in early days regarding the 2022 economic outlook. So far, housebuilders have all reported a strong first half to the year.
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