Bill Miller Says To Buy Bank Stocks

He alluded to this in his recent letter, but fallen Legg Mason (LM) money manager Bill Miller remains committed to bank stocks.

At a conference in DC, Miller said bank stocks would be winners for the next two years, and he criticised the government for forcing banks to dilute shareholders.

Of course, Miller’s been affectionate towards financials all the way down, and they proved to be his undoing. Historically, he made a killing by betting hard on weak industries that everyone else was dumping and then profiting big time when they turned around. With banks, he finally caught a falling knife.

But the overall point, that he’d suggest betting hard on what remains a horribly weak industry, is in keeping not just with his recent commitments, but the strategy that worked well for so long.

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