Bet on the Bank?

Now that the Fed has decided not to raise short term interest rates, this may present another opportunity for the small investor to look at leadership from the troubled bank industry. Many are furiously looking to extinguish  the debt owed to the government via secondary offerings and just  plain solid management strategies, while still seeking ways to increase margins even before raise eventually increase. I believe there will be a few  winners in the next year or so among  the crowd of national banks :Wells Fargo(wfc)Bank of America(bac)Citigroup(c) and Super Regional institutions such as

US Bancorp(usb) or local titans like New Alliance(nal). In the year 2010 take a cautious but optimistic look at some of these well run companies, it could be worth your while. Look closely at their cash-flow as well as their price to earnings ratios to see what potential of future growth lies ahead.

Have a great one!

quotes courtesy of cnbc.com

definitons courtesy of wikepedia.org and dictionary.com

About the Author