Now that we have unlimited quantitative easing, aka QE infinity, careful thought must be given to choosing bank stocks. Sure the ”lift of all boats” action of quantitative easing should help bank stocks across the board. However, the goal of easing is to lower long term rates, which could hurt bank stocks. Hurt might even be too strong of a word. It might just ding them. So when it comes to picking a specific stock it is prudent to apply rigorous fundamental analysis and choose the stocks with the most to gain and the least likely to be toppled after temporary positive catalysts fizzle.
This will be a three-part series. I will look at Bank of America (BAC) vs. Citigroup (C) and then look at Wells Fargo (WFC) and JPMorgan Chase (JPM). Two parts will be here on Seeking Alpha and the last will be on my own page since I will have little analysis to add, and both winners from each article will be great long positions. The difference will be the kind of investor they are best for by looking at the risk-reward.