Shiv Kapoor

Now's the Time to Buy Bank Stocks

disagree. An ETF is good for diversification of risk, but it does not address the solvency risk (only reduces it). The sector outlook on an enterprise value basis is positive. However, solvency risks remain elevated - i.e. even if enterprise value increases, the incremental valuation which might accrue to an existing shareholder will greatly depend on the method chosen in implementing the rescue package - for example, dilution by warrants granted to the government can significantly impact shareholder value of present shareholders. Me, I would invest only in entities who are positioned to benefit from the crisis and those whith strong balance sheets. The only one which comes to mind is Berkshire (& perhaps GS/GE but I would rather play those through BRK). Look to enter specific stocks only after specific solvency risks have been addressed.