Dramatic falls in equity prices on global markets have prompted Brentwood Group to consider tentative forays into the stocks of selected players within the besieged banking sector.
Brentwood Group are thought to believe that the UK’s endeavors to stave off the crisis within its banking system have made the prices of some of the stocks particularly appealing to the long-term investor.
A source close to Brentwood Group said that the UK’s bailout plan differed to that of the US insofar as it seeks to purchase equity in the banks rather than to buy up illiquid assets on their balance sheets. The additional funds made available to the banks for short-term borrowing further strengthened the case for consideration.
Although Brentwood Group have reportedly advised clients to avoid the banking sector, recent coordinated attempts to avert systemic breakdown have convinced the Asian-based wealth manager that the acquisition of keenly priced stocks represents an opportunity for impressive long-term return on investment consistent with their strategic goals .
