UK banks buy tip

I hope you all acted on my buy tip for UK banks last summer. As you can see from the chart above when I said buy I actually meant sell!

Joking aside, the fear in the market when it comes to banking stocks is palpable. HBOS and RBS have both recently released updates stating that trading is inline with earlier guidance but the market has just ignored that reassurance and kept on selling.

The problem is simply that no one wants to buy banking shares at the moment. No one knows when the stream of bad news for banks will end and as a result the shares have been heavily discounted.

Is the sell off overdone? Probably, but then I have been saying that for a long time.

Incredibly HBOS has lost 75% of its value since its peak just over a year ago. I would have thought that discounts all the current bad news and lots more to come, including a UK recession.

It looks like UK banks are going to ruin my 2008 performance as well 2007's. I am still clinging on to my HBOS, LLoyds TSB, RBS and Barclays shares for the moment. They have to stop falling at some point... don't they?