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Are bank stocks worth the risk?

“If bank stocks are the best investments you can find for your portfolio, you should fear for you wealth.” Value Investment Institute, March 2011 Pretty strong words. I came across this commentary on banks from the Value Investment Institute and it prompted me to write this post on the suitability of banks for income investors. It’s a great and short read. First, lets look at why the authors are so negative on banks. It comes down to the primary risk management principal, preservation of capital. If the risk of capital loss from an investment is inordinately high then no other … Continue reading

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