2 Top Bank Stocks to Buy Right Now
The stock market has taken a downward turn recently, thanks to fears about the coronavirus outbreak. And banks have been hit harder than most.
The short explanation is that interest rates have fallen dramatically as investors have begun to pile into "safe" assets like Treasury bonds. In fact, as I'm writing this, both the 10-year and 30-year Treasury yields are just above their all-time lows. Since banks rely on interest income to make money, lower rates could put pressure on profit margins.
While bank profits could absolutely suffer in the short term, now could be an excellent time to add some rock-solid bank stocks, like Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS), to your portfolio. These two banks are both down 13% from their 52-week highs, despite excellent long-term growth catalysts and strong business results.
Source Fool.com
