Bank stocks are generally seen as conservative investments. That simply means that these stocks skew more to the value side rather than the growth side of your portfolio. They aren't known for delivering spectacular annual stock price growth. But these stocks tend to pay safe dividends that give investors the benefit of compounding over time.
However, as the implosion of Silicon Valley Bank shows, a rising interest rate environment can affect the performance of some banks. This is because many banks hold some of their excess cash in long-term bonds which decline in price when interest rates rise. And if a bank has too much exposure to these long-term assets, it can create liquidity problems if consumers move their deposits to higher yielding treasuries.
But there are enough quality bank stocks available that you can find options that fit your portfolio without having to go beyond your normal due diligence. In this special presentation, we give you seven bank stocks that make great investments regardless of prevailing economic conditions.
Click the "Continue to Slide #1" button to view the first company.
