Image source: Getty Images
I think these FTSE 100 shares might fall through the floor next year. Here’s why.
Lloyds Banking Group
The Lloyds (LSE:LLOY) share price has risen an impressive 34% during the past year. While investors are toasting these strong gains, I fear that the bank‘s stratospheric rise is unwarranted, and that it’s in danger of a correction before too long.
For one, it faces a prolonged period of weak earnings growth, plagued by low levels of lending and further loan impairments. This reflects the poor outlook for the UK economy and the bank’s lack of overseas exposure.
I also fear that expected interest rate cuts will damage Lloyds’ bottom line. While Bank of England actions would boost the economy, they would also sap the banks’ net interest margins (NIM), a critical gauge of profitability.
The biggest threat to the Lloyds share price, however, could be from the…
