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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

    Pacwest Bancorp

    Western Alliance

    PNC Financial

    M&T Bank

    Truist Financial

    Citizens Financial

    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.

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