Big Bank Stocks On A Slippery Slope

These are all companies to be avoided. But at least Bank of America was smart enough to lend to higher-grade firms.

That makes it the best pick in a bad neighborhood.

Right now, the reserves set aside by the large banks seem to be a manageable problem.

But much rides on where oil prices are headed.

Fred Cannon, global director of research at investment bank Keefe, Bruyette & Woods, made an interesting comment to the Financial Times.

He said, “If it (the downturn in oil) spills into the broader economy, and it starts looking like Texas in the 1980s, it could be a different story.”

That’s a scenario investors in bank stocks, and the rest of us, hope will not come to pass.

This article is brought to you courtesy of Tony Daltorio from Wyatt Investment Research.

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