let’s talk about this banking “crisis” one more time because even though it’s starting to fade from the headlines it’s still giving us a terrific setup for 9 dividends and upside what we’re going to talk about today is the very essence of contrarian investing i’m talking about profiting from the gap between what the media is often breathlessly reporting and what regular folks on the ground actually think and if you’ve been to any news website lately you could be forgiven for thinking this banking issue sounds like it could spark a mass panic and a bank run taking down the economy with it that’s the media’s take but what about regular folks on the ground are they standing ready debit cards in hand according to a new harvard capsharris group poll of over 2000 americans the vast majority aren’t scared of a bank failure in fact 91 of respondents said they weren’t bothered or thought it would have a small effect on them “surprisingly while wall street is fixated on the banking crisis most average americans show little concern and believe their deposits are safe” mark penn a director of the poll said while only 40 said they’re not worried at all if not for the overhyped coverage that number would be closer to 100 especially now that all deposits even from failed silicon valley bank are guaranteed moreover the other troubled banks have already been taken over or have gotten guarantees to keep humming along it’s good that people aren’t panicking but there’s still way too much stoked fear so let’s talk about how things are likely to play out a little further on we’ll look at a 9yielding closedend fund cef that’s nicely positioned to profit as today’s deepdiscounted banks return to favor a bank doesn’t keep all of its customers’ money in a vault at once like all businesses they use leverage to boost profits unlike most other businesses though banks have very strict limits on how much leverage they can use those limits are usually no big deal unless a bunch of depositors take their money out at once which was what happened to silicon valley bank when billionaire peter thiel told many startups he’d invested in to take their money out when your customer base is a closeknit community in one sector like a bunch of startups in silicon valley this is a huge risk big banks like morgan stanley ms however don’t have that risk because they have a large and varied base of depositors which is why the results of the harvard survey are both important and reassuring not enough americans are scared meaning your money is safe morgan has like many banks erased its 2023 gains and entirely because of bankrun fears that started with silicon valley bank and to be sure memories of the 2008 financial crisis don’t help and since the harvard poll tells us a bank run is unlikely morgan is now a strong buy however the sector as a whole remains volatile in the short run though we have seen the beginnings of a recovery as investors try to reprice both failing banks like first republic frc and healthy banks like bank of america bac and morgan stanley there are big opportunities here for profitable long and shortterm trades we can profit from both without having to take on the work of shortterm trading ourselves when we “farm out” our financesector buys to the threeperson portfoliomanagement team at the john hancock financial opportunities fund bto bto yields an outsized 9 today we also love the fact that the cef’s payout has more than doubled in the last decade the portfolio not only holds the best banks but it also didn’t and currently doesn’t have credit suisse first republic or any other dogged bank as a major position finally a note about that management team the fund’s three current managers have been at their posts for years but the thing we love is that they were all understudies of the former manager susan a welch who had a long career in bank regulation before she left that expertise which has almost certainly been handed down is more important than ever today—and it gives this fund extra appeal michael foster is the lead research analyst for contrarian outlook for more great income ideas click here for our latest report “indestructible income 5 bargain funds with steady 104 dividends”