Stop! Buying This Stock May Spell Trouble

Updated
Stop! Buying This Stock May Spell Trouble

In this segment from The Motley Fool's everything-financials show, Where the Money Is, banking analyst Matt Koppenheffer tells fellow analyst David Hanson and viewers why he is considering picking up shares of Capital One . Matt cites the company's compelling business model and attractive valuation.

On the other hand, David notes the risks involved with Capital One's portfolio and why lack of revenue-diversity could ultimately hurt the stock.

In the run-up to the financial crisis, consumers piled on the credit card debt. Now, the U.S. government has piled on more than $10 trillion of new debt since 2000. Annual deficits topped $1 trillion after the financial crisis. Millions of Americans have asked: What the heck is going on?
The Motley Fool's new free report, "Everything You Need to Know About the National Debt," walks you through with step-by-step explanations about how the government spends your money, where it gets tax revenue from, the future of spending, and what a $16 trillion debt means for our future. Click here to read the full report!


To follow the Fool's coverage of financial stocks on Twitter, click here.

The article Stop! Buying This Stock May Spell Trouble originally appeared on Fool.com.

David Hanson owns shares of American Express. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends American Express. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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