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3 Reasons to Avoid Banks

This video is part of our "Motley Fool Conversations" series, in which advisor James Early and business community connector Matt Trogdon discuss topics across the investing world.

In today's edition, James and Matt talk about the risks in investing in bank stocks. Many are difficult for investors to understand and haven't benefited as well from the favorable market environment as they should have. James offers two bank stocks that are particularly guilty of being cryptic, as well as two bank stocks he likes.

If you're interested in some of these dividends on your quest for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top, dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

James Early and Matt Trogdon have no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. Motley Fool newsletter services recommend Goldman Sachs Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 30, 2012, at 10:48 AM, robyrob wrote:

    Hey can you guys write articles? Streaming video doesn't work too well in a lot of offices due to use of servers, blocks, etc. "Crap another video!"

  • Report this Comment On March 30, 2012, at 1:04 PM, FelixCaliferous wrote:

    This was really shallow, guys! You don't like banks because you compare them to a blind man crossing the road, their statements are cryptic, and they are not the rock-solid dividend payers that they used to be. That's not very deep insight. I almost expected you to add that banks are mean and evil.

    Interest rates are low and this helps banks. The Fed says rates will stay low for a while. Troubled banks have been bailed out in the past. As an investor we are looking forward. What does the future bring?

    Stocks in Citibank and BofA are up a lot so far this year. The market is telling us something.

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