If you’re considering investing in AIB shares, you may be wondering if now is the right time to do so. With so much uncertainty in the markets, it’s understandable to be cautious. In this blog post, we’ll explore the big question on everyone’s mind: should you buy AIB shares?
Surely now is the time to Invest?
People as a rule and Irish people in particular tend to have short memories and their memories of losses and mistakes are often diluted. Look at the current property market. People’s feelings are often more optimistic than they should be. The Government “sales” have a poor history. For those of you in your mid to late 30 and above you would remember the Eircom fiasco.
Buying AIB Shares Could be a Great Investment
Buying into AIB shares will essentially be about buying into the Irish economy recovery story. However, we at Alpha Wealth would strongly recommend AGAINST borrowing money to buy the shares.
AIB remains a strongly capitalised bank that is unlikely to go off the rails any time soon. The real question is whether there will be sufficient growth in the lending economy to justify significant share price growth.
If you look at the performance of the Irish economy and the Bank of Ireland in recent years, it has done well, yet the share price is still languishing around the 27c mark. Investors who bought into PTSB in April 2015 at €4.50 per share are nursing heavy losses as the stock trades at €2.65.
The main issue we as Independent Financial advisors have is buying shares is a risky business. On a risk scale of 1 (low risk) to 7 (high risk), Shares are a 7 (unless you own over 100 of them and then this number falls to a 5 or 6 – depending on the share). This is especially true if you hold just one share in your portfolio.
The other thing is the cost of buying or selling the shares. Whilst there are some cheap online stockbrokers out there (such as Degiro), you need to know what you are doing and importantly when to sell. Sometimes greed kicks in and it depends on what time scale you have, the longer the lower the risk.
AIB Share price from 2012 -2017
Go diversified
As financial advisors, we feel there are much better options available for saving or Investing which are more diversified and better managed. If you would like to have a no-obligation chat, give us a call (021-2061780) or book a financial consultation today.