I am convinced that banks will do fairly well in an era of rising interest rates. They profit from trade activity and uncertainty and they profit from loaning people money at higher interest, without increasing their costs. Another indicator is that Warren Buffet snagged a good chunk of Citigroup lately — but I am too late for that, the prices are way up already.
Right now, I have no exposure in the financial sector, something I'd like to chance. I also have no clue on how to evaluate a bank's fundamentals and balance sheet and spotting things like risk and time bombs. I see a lot of the P/E value of banks is fairly low, but I have no idea if that means they'll be a medium-long term success.
So I am not looking for a specific hint of “buy this stock”. Instead, I am looking for advice/tutorial to help me form a judgement if a specific bank is a buy.
Any advice people can give? Pages, videos, books — all is good.
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