When I went live this week, there was a potential deal on the table for some of the largest banks in the country to bail out First Republic Bank in an effort to stem the ongoing crisis that started with the SVB collapse. Now, that deal seems to have gone through, and First Republic is set to receive a $30 billion capital injection from JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Truist, and others.
As consumer and investor confidence continues to waver, however, markets are staying volatile, rallying very briefly on Thursday only to nosedive again as I write this. I’m sure that leaves a lot of you wondering what to do with bank stocks right now, which is why it was my topic of choice for this week’s Buy This, Not That.
On the balance, a lot of the stocks you were interested in remain in the “buy” category. A few things to keep in mind here – any national or international bank that’s “too big to fail” has good potential as a long-term hold regardless of whatever difficulties grab attention in the media. That means there are a lot of good “buy the dip” opportunities out here, but some are better for trades than others because of a lack of appreciation potential.
Regional banks are a bit of a different story, and I reviewed those case by case.
We’ll be back next week with another episode. See you then!