4 Comments

I wonder why you'd invest in any bank. The return profile is similar to the market, but the risk is higher-borderline unquantifiable. Love to hear any thoughts.

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My note this morning became a contrarian view on $KRE!

Which parts of the market are you finding of interest?

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Ha ha, I saw that! My investment strategy is the future, big brands, and "old money." Long-term perspective with the occasional tactical move like you suggest with $KRE.

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For the smaller / regional banks, I'm in agreement.

The larger banks have a Fed/FDIC whose moral hazard means there's a firm support to see them through any crisis, add to that the loan loss provisions some of these institutions are holding - which at some point will make its way onto the "earnings" section of the balance sheet.

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