3 Incredibly Cheap Bank Stocks
After the Great Recession, bank executives learned some valuable lessons, and new regulations have helped their banks strengthen their foundations. Not only have regulations required banks to hold a higher amount of equity capital on their balance sheets (making them more resilient to a downturn), but many management teams have also de-risked their underwriting, making their asset bases less susceptible to a market pullback.
Nevertheless, virtually all bank stocks have been feeling some pressure of late, as U.S.-China trade war tensions and the flattening of the yield curve have fed concerns over a possible recession. And if you'll remember, the last recession was really bad.
But if you're a long-term, value-oriented investor and you don't think the next downturn will be as bad as the Great Recession of 2008-09, it might be a great time to grab some quality bank stocks trading at some relatively low, low prices based on price-to-earnings or price-to-book ratios.
Source Fool.com
