Should You Invest In Bank Stocks Right Now?
Where there is fear there is opportunity.
1. What about the investment risk?
The FED and the treasury has said they will do anything necessary to make sure the banking system stays the same. These 'smaller' banks are just as important as the larger ones.
2. The recovery is never as quick as the downturn
Stocks fall faster than they recover.
3. The whole sector is down
You could invest in a total sector bank ETF. Or a regional bank ETF. And wait till it comes back.
4. This crisis will boost deposits at the big banks.
You could invest in Wells Fargo, Chase or Bank of America.
5. Foreign banks have been hit really hard
UBS. Deutsche Bank.
Those countries will not let those banks fail.
6. Regional banks hit hard
First Republic Bank
You could create your own ETF and buy a little bit of each of these names.
7. Banking software
These smaller regional players will be investing in better controls and management and will turn to software to help. Fiserv or nCino.
8. Higher rates from these banks
These smaller banks have lost a lot of business. They may be offering better deals on CDs or savings accounts to attract new customers.