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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: These banks have been "hammered" in the recent downturn (for good reason due to prospective loan losses, and near zero rates). That said, do you see the Fed mandating dividend cuts/eliminations in the future here, or is the market just really skittish about it? They all look "cheap" right now, but an elimination of the dividend would be a real reason for me to leave this space if it were as distinct possibility vs. a "tail risk". What is your take on this and these companies - do you see much risk in dividend cuts here? Or is it just a reflexive thought in that the European banks were mandated to eliminate dividends...
Read Answer Asked by David on June 15, 2020
Q: I own Truist Financial (formerly BBT) and ever since it merged with Sun Trust it seems to have struggled. Now, with Covid-19, it is taking an inordinate beating. I'm wondering if taking on Sun Trust has been bad timing now because of the virus crisis. I also own BAC and they have a similar looking Balance sheet only with much bigger numbers. Can you have a look at their fundamentals to ascertain if they are healthy enough to survive this pandemic and be able to get to the other side or should I be cutting it loose.
Thanks, Carl
Read Answer Asked by Carl on April 17, 2020