Buy bank stocks now?

US bank stocks have been seesawing since the Silicon Vally Bank run 2 weeks ago. Many traders might see this as a great opportunity as fast and big back-and-forth market movements present.  Buy and hold investors might also find dip buying opportunities too. The common question is whether it is the bottom.

Perhaps not, who knows when it will bottom. However, it might not be a bad idea to buy it at 30% or 50% reduction from the peak price. If someone doesn’t have any exposure to Financial stocks, it might be a good idea to buy some now. I would only buy banking sector ETF though.

Some pundits said there will probably be more regulations coming especially for the regional banks which could supress the bank earnings. It might be true. Or it can reduce risks and stabilize the banking industry in US. Could this be a good thing too in the long run? Is this the G, Governance, part of the ESG? Basically short term pain for long term gain.

Bank run is very detrimental to many innocent depositors who did nothing wrong. They are not all tech billionaires. Many are just small business who were devastated by the bank run news and relieved by the government guarantee of all deposit money.   I feel that this time, the US government learned from the previous execution mistakes of the 2007 financial crisis. Help the Main Streets rather than the Wall Street this round.

Hope you find good opportunities in the market.

Published by Worthfy

Financial literacy and counselling

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: