Investors can still profit by investing in bank stocks, despite a strong rally in the sector during the past several months. Columnist Peter Eavis suggests that investors buy stocks of lenders with strong reserves against future loan losses. During the past 12 months, JPMorgan Chase, Bank of America, Citigroup, U.S. Bancorp and Wells Fargo have put billions of dollars more into bad-loan reserves than they would during a healthy economy. As provisioning declines, the banks should see a boost to earnings, based on the difference.
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