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He Barclays (LSE: BARC) The price of shares has fell 13% since President Trump imposed his import tariffs punitive to the world.
It comes after Ftse 100 More than 3% fell during the same period. He is back where he was as time as … Oh, only January. Maybe it's not a big problem. It is a smaller fall than the S&P 500which lost 4.8% on the day after the announcement. And the Nasdaq It fell 6%.
The price movements that I speak here are while writing on April 4, and they are likely to change even as the minutes pass.
Panic, or what?
What would the billionaire investor do buffett? At least I could provide a quote to make us think:
Every decade more or less, the dark clouds will fill the economic heavens, and briefly rain. When such downfall occurs, it is imperative that we rush outdoors with washtubs, not teaspoons.
Letter a Berkshire Hathaway Shareholders, 2016
The question is, do Barclays actions resemble the rain of gold he is talking about? Well, the dramatic consequence of Trump's tariffs seems quite torrential.
Why Barclays?
Barclays is not the only FTSE 100 bank that falls in recent days.
With these major import levies imposed on goods, it is not immediately obvious why banks should suffer. At least not directly. But when other companies hit a recession, banks behind their financing cannot really escape some pain.
Natwest Group It has dropped 8.9%. And the Lloyds banking group The price of the shares has dropped 8.8%, despite an approach to the United Kingdom's businesses.
Barclays was the only remarkable exception after the 2008 bank crisis to maintain its international banking business. About a third of its income comes from the United States. Therefore, it is not surprising that the feeling has changed more than the other banks of the United Kingdom Street.
In perspective
Before feeling too shaken by this sudden fall in the price of shares, we should really look at the general panorama. Barclays actions have still risen 33% in the last 12 months. And have tripled more than five years.
Even after that, we were looking at a price to earnings (p/e) of approximately 7.4, only about half of the FTSE 100 average means that the profits in 2025 could receive a significant blow and still leave the actions in what I see as a territory of good value.
Forecasts see the growing profits that push the Barclays for 6.7 in 2025, and as low as 5.3 by 2026. They will undoubtedly be updated soon. But I still see a good safety margin in such scarce value.
Take it?
Barclays has to be worth considering any investor who thinks that Donald Trump, as innumerable others who have tried before him, will not be able to reach the market in the long term.
In fact, I think the same about a lot of actions fallen in the United Kingdom at this time. And some of us. Where is my Washtub?
(Tagstotranslate) category. Investing