Mergers and acquisitions can be very cyclical in nature, occurring much more frequently when market conditions and interest rates are favorable. With the recent run of mergers we've seen just since the beginning of 2013 alone, are we heading into another M&A boom? In the following video, Motley Fool financial analyst Matt Koppenheffer takes a look at three smaller boutique investment banks in this climate, and tells investors why a spike in M&A activity could mean blue skies ahead for these small players much more so than for the bigger Wall Street banks.
However, that's definitely not to say the big guys should be overlooked completely. With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Goldman Sachs is a buy today, I invite you to read our premium research report on the company. Click here now for instant access!