Find a More Rewarding Point of View with These Two Stocks

My view of the world changed forever back in 2016.

Up until then, I only priced bank stocks based on their price-to-book value.

I was looking to buy underperforming banks at bargain prices and prefer that an activist shareholder was involved.

I was hunting takeover targets exclusively and I was doing very well as a result.

In the spring of that year, I wrote an article suggesting investors should avoid banks that trade at several multiples of book value.

One of the examples of a bank trading at a price I thought to be too high, was Home Bancshares (Nasdaq:HOMB) of Conway, Arkansas.

That article appeared on TheStreet.Com on a Friday afternoon. Saturday morning, I sat at my desk with my coffee and saw that I had an email from John Allison, the CEO and largest shareholder of HOMB.

He thought I was being unfair, and not looking at the situation from the correct point of view. I wrote him back and agreed to talk that morning so he could share his side of the story with my readers.

That’s why I’m here to help

Making Your Government Work for You (Even When It Doesn’t Want To)

Interest rates are low and it doesn’t look like that is going to change anytime soon.

Between trade wars and weak economic reports, it looks increasingly like the Fed will lower rates at least once this year, and traders in money markets are indicating they expect this to happen at the July meeting.

If so, that means it’s going to become even more difficult to earn a decent return from stable securities.

Treasury bill and bank CD rates will be microscopic, money market rates will inch even closer to zero, and high-quality bond yields will continue to be meager fare.

Turning to the historically low rates in the junk bond markets will be a disaster if the economy slows further – or worse, tips into a recession.

Adjustable rate levered loan funds and business development funds may appear attractive in theory, but in a slowing economy, theory can be even riskier than junk bonds.

Right now is simply a challenging – and potentially dangerous – time for folks looking for a safe, reasonable yield on their money.

That’s why I’m here to help

View this page online: