The best stock market sector to invest in 2008

Seeing that sort of title to an article should always make you scratch your head.

The fact is that the markets are essentially unpredictable. If anyone knew what was really going to happen then they would all make an unlimited fortune and wouldn't need to write newspaper pundit columns, as nice as the money they might get is.

So rather such sentences should always have a health warning, noting that they are people's opinion and what can be hoped for at best is some sort of consensus opinion on what will happen.

And for the UK market, the FTSE, in 2008, a large number of the experts when you trawl through the papers seem to be saying that the banking sector will do best in 2008.

They took a bit of a hit towards the end of 2007 with worries about the sub-prime exposure in the US and the usual thing that hits the banks - debts that turn bad and increasing provisions to cover the shortfalls arising.

However many feel that this has been overdone and that the banking sector is a lot stronger than that and can easily take the hit - after all they have in recent years made a record profit year on year and often increasing it by a very healthy percentage year on year too.

Whilst the sentiment may be low in the banking sector, many experts now think the market as a whole has been too pessimistic and therefore the values of stocks well too far at the end of 2007 and they are predicting that they will come back well in 2008, and that the price at the end of 2007 and start of 2008 is too heavily discounted which will correct, so they would suggest you get in there and enjoy the upside.

However these are only the experts opinions and they do often get it wrong, so as ever it needs to come down to your personal situation and opinion whether you decide to wade in with your money or leave the sector and perhaps the markets as a whole well alone!

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