You Don't Have to Pick a Winner in Banks. Here's Why.
So far, 2023 has been a very bad year for banks. And yet the poor performance of the sector might be exactly what attracts some investors. Indeed, contrarians are always on the lookout for situations when Wall Street seems unduly pessimistic. If you are thinking about banks, here are three exchange-traded funds (ETFs) to consider that allow you to avoid company-specific risk.
When investors think about the Great Depression, one of the first things to come to mind, after the massive stock losses, is bank runs. They were common then, but they are not common now, thanks largely to government regulation and the Federal Deposit Insurance Corporation, which was created to protect bank customers. So when several banks experienced bank runs in early 2023 it was a bit of a shock. Even worse, some regional banks actually failed because of the bank runs.
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Source Fool.com
