Bank Stocks a Possible Buy on Pullbacks, Says Profit Confidential Finance Sector Report

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The big banks have steadily recovered since the Lehman Brothers collapse in late 2008 that sent bank stocks in a punishing downward spiral, states a recent article in top financial web site and newsletter Profit Confidential. According to George Leong, contributor to Profit Confidential, the climate for banks is much better and he feels they are worthy of a look.

bank stocks a possible buy on pullbacks, says profit confidential finance sector report

Bank Stocks a Possible Buy on Pullbacks, Says Profit Confidential Finance Sector Report

“I view pullbacks as an opportunity to accumulate shares, as I remain longer-term positive on the big banks,” says Leong.

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The big banks have steadily recovered since the Lehman Brothers collapse in late 2008 that sent bank stocks in a punishing downward spiral, states a recent article in top financial web site and newsletter Profit Confidential. According to George Leong, contributor to Profit Confidential, the climate for banks is much better and he feels they are worthy of a look.

“I view pullbacks as an opportunity to accumulate shares, as I remain longer-term positive on the big banks,” says Leong.

In his recent article, Bank Stocks: Is it Safe to Buy Them Now?, Leong outlines that the progress of the banks is evident.

“We are seeing improved balance sheets and attractive valuation and some of the banks are allowed to increase the dividend payments and buying back of shares,” says Leong.

Leong continues to like the progress of the big banks, but remains concerned with some of issues on their balance sheets and the government’s restrictions on banking activities. According to Leong’s article, the recent Federal Reserve stress test pointed to an improved banking sector, but there remain some issues. In all, 15 of the 19 U.S. big banks passed the stress test.

The Volcker Rule proposed by economist and ex-Fed Chairman Paul Volcker to restrict some speculative activities has hurt profits, according to Leong, but also strengthened the banks.

“These are good signs that point to a recovering banking sector,” says Leong.

Leong believes that the ability to pay out dividends and increase dividends will be bullish for banks, as this would attract institutional and retail investors seeking the banks of the past.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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