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I've been watching – and profiting on – a ridiculously profitable wave I've seen developing over the years. It's not exciting, but it's the easiest money there is: bank consolidation.
The trend has its roots in the 1980s, when the interstate banking laws were changed to allow ownership across state lines.
Things got "interesting" in the aftermath of the savings and loan crisis, when the prices of great banks fell right alongside the dogs, overstuffed with junk bonds and dubious mortgages. At the time, it was cheaper by far for any CEO worth their salt to just up and buy a smaller competitor rather than try and expand in a new state or region.
The consolidation continued right on through the Internet "dot-com" bubble and collapse, right up until the eve of the credit crisis in late 2007.
Consolidation went on a holiday of sorts until about 2011, when it started right back up where it had left off 34 years earlier.
That brings us up to speed.
The news is, bank consolidation will – I repeat, will – make you stinkin' rich if you kick back and let it work for you. Maybe the easiest fortune ever made.
Why? Simple – there's a lot more consolidating left to do. A whole lot more.
Each year, somewhere between 3% and 5% of American banks are taken over, and that's going to continue until we get below 2,000 banks.
As you'll see in a minute, we're quite a ways from that milestone.
Making money off this trend is ridiculously easy. If you can sit around waiting for a package from Amazon, you have the specialist skillset required.
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.