Bank Stocks Are Falling and Investors Are Scared. That's Almost Always the Best Time to Buy.
For the first time since the Great Financial Crisis, a crack in the banking structure has emerged, and we have seen -- so far at least -- three significant banks fail and be taken over by the FDIC, and one other bank voluntarily wind down its operations. In all, investors have lost hundreds of billions of dollars in market cap and are unlikely to see single penny once the final scraps are picked over.
As a result, most bank stocks have crashed. The SPDR S&P Bank ETF (NYSEMKT: KBE), a decent proxy for large U.S. banks, has lost more than 30% of its value from the 2023 peak, while the SPDR S&P Regional Banking ETF (NYSEMKT: KRE) has fallen almost 40% from its high.
Investors are scared to own banks right now. Ironically, history has shown us ample evidence that this is when investors should be buying banks.
Source Fool.com
