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Ignore the bank bailout and profit from the financial sector

Today's Financial News - Posted October 1, 2008

Put your money into the financial sector? No, Andrew Gordon, of Investor’s Daily Edge, isn’t kidding. While WaMu (NYSE:WM), Fortress (NYSE:FIG), Lehman (OTC:LEHMQ) and all their friends have been falling to their knees, another side of the financial industry is thriving, with or without the bank bailout.

by Andrew Gordon

Baltimore — (TFN):  The financial sector continues to bleed out.

Last Friday WaMu finally fell into government hands and their deposits and branches were simultaneously taken over by JP Morgan. Fortress – once a flourishing investment company – just decided that it better keep the $100 million it was going to give its shareholders as a dividend. They get nothing this quarter. And GE suspended its current stock buyback.

The government’s bank bailout is supposed to revive the patient. The government says it has no choice. Without healthy banks, it says, the economy will spiral into a deep depression.

But that’s a big simplification of what is happening. Only part of the financial sector is on a death watch. The other part is healthy and thriving.

While the big banks concentrate on survival, the small banks are doing better than ever. Read on to learn why.

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Posted by Andrew Gordon · Filed Under Investment Strategies 

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