Dividend yields....you have to factor in future earnings, forget past profits in this calculation.
I already have some bank shares and will not increase exposure for the following reasons:
1. Still a question about exposure to CDO's, etc.; 2. Slowing economy will increase loan defaults and bad debts; 3. Possible reduction in housing values may cause more mortgagee sales;
The bank share price may seem low in comparison to past years, but things have changed dramatically and you must look to how their earnings will stack up over the next 1 and 2 years.
