Small Can Be Good With Banks

Over the past two years the Trade of the Decade in bank stocks has taken shape nicely. I have suggested and purchased dozens of little banks, and even a few larger ones, and they have done pretty well so far.

We have had a few takeovers along the way already but nothing like we will see over the next three to five years. Credit conditions have slowly, but surely, improved and banks have reorganized or disposed of many problem assets during this period. This morning, Moody's upgraded the industry from a negative outlook to stable as a result of improving conditions. In spite of the improvement there are still plenty of bank stocks to buy as Wall Street continues to focus on the earnings outlook for small banks and not the asset value and potential for merger and acquisition activity....637 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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