Bank stocks are companies that operate checking and savings deposits and make loans. Referred to as financial intermediaries, banks are the middlemen between account-holding depositors and loan-seeking businesses and individuals. A favorite among buy-and-hold investors like Warren Buffett, banks serve an important function in regulating the money supply of the country and are thus viewed as a relatively future-proof industry.
These bank stocks can help to grow and protect an investor's portfolio over the long haul, offering growth as well as a margin of safety.
Here are three cyclical stocks long-term investors may want to consider as ways to play what could be a recovery brewing next year.
In this dynamic landscape, firms that are the fastest to adopt the technology stand to prosper.