Small Banks Look Attractive

The housing market appears to have finally bottomed, so it should be a logical time to allocate more funds to the financial sector, which should be one of primary beneficiaries of a sustained housing recovery. The challenge is to find financial firms that will not be weighed down substantially by Dodd-Frank, are not exposed to Europe, don't have proprietary trading operations that could blow up, and are not likely to be legislated out of existence or get caught up in the scandal of the month (Libor anyone?).

I think an investor's best bet is to look at smaller "vanilla" institutions, as they should be much less negatively impacted by the complex and fast-changing banking environment. Here are two small banking groups in the Northeast to consider. Both are paying solid dividend yields, sport reasonable valuations and have had recent insider buying....256 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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