2 Bank Stocks to Buy Before the Market Recovers
Banks are an indispensable piece of your economic life, offering consumers the ability to save money, pay bills, and take on debt. It's that indispensability that makes bank stocks a popular choice for value investors.
Not all bank stocks are created equal, however, so you need to go in with your eyes open to the risks. Still, some banks look incredibly well-prepared for an economic downturn right now and offer generous dividend yields. If you are a value investor looking for bank stocks to consider during this market (and macroeconomic) downturn, you might want to consider Canadian banks Toronto-Dominion Bank (NYSE: TD) and Bank of Montreal (NYSE: BMO).
Canada's banking system is subject to pretty strict oversight. The government has effectively enshrined a small group of big banks as the industry stalwarts through regulations that limit acquisitions and doing so has made it more difficult for upstarts to compete. That means Canadian banking giants like TD Bank and Bank of Montreal are not going to offer investors huge growth potential (though both have exposure to other markets, like the United States, which provides some avenues for growth). However, if your goal is reliable passive income, they are standout options.
Source Fool.com
