Is this 2008 all over again?
SVB Financial Groups and Signature Bank collapsed. Credit Suisse got bailed out by $UBS. A flurry of activities since then. Senator Warren wants policies and regulations re-examined. A rumor of Warren Buffet buying up regional banks circulated. Even other regional bank stocks tanked. $PACW went from $26 to below $10. Western Alliance Bancorporation ($WAL) went from $70+ down $26 (back up to $36).
The Wall St is divided on this issue. We have people like Jim Cramer says the worst is yet to come. Bill Ackman thinks regional banks are a bargain…as long as the government is willing to do the right thing. CFRA analyst Alexander Yokum thinks these banks would do well.
- East West Bancorp ($EWBC)
- Citizens Financial Group ($CFG)
- Synovus Financial ($SNV)
- Regions Financial ($RF)
- Webster Financial ($WBS)
- Fifth Third Bank ($FITB)
We, of course, have a different suggestion. You should consider $DPST.
Risky but we know the regional banks are the backbone of our economy. Yes, maybe one or more might fail but for many to fail…it would be too detrimental to our economy. And I actually believe that this isn’t 2008 that we will see a systematic failure in our banking system. If that’s the case, why not but 3x fund that focuses on regional banks so you maximize the upside, which will happen. Not if it will happen but when. Only question will be: how long would it take for regional bank stocks to go back to where it used to be. In 2008, it took a little while. During Covid, 1 year. But with $DPST, you get the 3x return rather than going back to where it used to be.
Again, do your own DD before making any investment decisions. Happy Trading!