Financial Warrants Offer Outsized Gains

Despite the fact that the easy gains for owning bank stocks have come and gone, the runway still looks long for the financial industry today. (I remember 2009, 2010 and 2011 and being in the minority camp touting names like Bank of America (BAC) and Goldman Sachs (GS).

The improvement in the U.S. economy, albeit not smooth and widespread, is excellent news for financial stocks but one that won't manifest for another couple of years. The continued pickup in economic activity -- growth in home and auto purchases -- represents loans that are of much higher quality than the class of 2007 and 2008. The quality of today's loans will begin to show up each and every quarter on the income statement of the banks.  ...531 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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