Promising Financial Sector Stocks
Right now, financial sector stocks seem to be nothing but trouble. News of additional writedowns due to the housing market crisis continues to roll in. Indeed, it seems as though there are no good options when it comes to investment banks and mortgage lenders.
But this isn’t true. There are actually some financial sector stocks that have some promise. The key is looking at the fundamentals — and analyzing what the companies were doing before (and during) the preliminary and early stages of the housing market crisis. Because there are companies out there that are doing okay (Residential Finance is actually hiring), and some that look as though they will see some solid gains.
BusinessWeek offers a good look at some of the more promising financial sector stocks:
- U.S. Bancorp (USB): This company has always been lauded for its efficient business model. It has continued to find ways to cut costs. Even though the stock has been somewhat volatile, an overall gain has been seen since last August. And the practice of setting aside capital means that USB has a better ability to absorb costs.
- Charles Schwab (SCHW): Instead of investing in bad debt — as so many other investment banks and firms did — Charles Schwab kept to more solid investments. And it has paid off. The company is on better footing than many of its rivals, and as a result has been able to sign up more online investing accounts.
- Interactive Brokers (IBKR): Making money on all the trades that have been made since the housing market crisis began. Wealth management companies have profitable divisions — especially when on factors in fees paid for trades made on the stock market.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.
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financial sector stocks, investments, schw
