I was a die hard value investor , used all the tools and formulae and paradigms and more....I had over 30 companies in a diversified portfolio , when the GFC hit I realised one thing ..governments will always bail out banks....the top banks....that is..
Lehman ( lemon ) bros and Bear Sterns were used as an example to show all and asunder what would happen if they did not bail out banks , Goldman sux was a cot case...the usa govt bailed them out....needless to say Goldman ( jewish)got rid of its Jewish rival in lemon bros...the yanks did bail out the detroit car manufacturers but no-one else...
The top 4 banks have good ROE's and they still would and do figure in my value investing criteria , I am heavy the top 4 ,
they may fall somewhat when housing market deteriorates but tell me a stock that wont , then tell me what stock would still exist...a good measure would be to start from those stocks that survived the GFC....I mean they came back from being on the ropes....as a smaller stock I like and bought is JBHIFI before all the media hype...TLS is the mammoth here but it may be under threat...I also have energy stocks for a future turn around .
Upshot..yes I am heavy in banks , I sleep at nights , my missus is happy with the dividends and franking credits. the new Basel / APRA requirements will dampen the banks' Roe a bit but I still value them....
Just my opinion , not advice , what would I know anyway...
