The dividends are safe for the banks, BMO dividends were safe in January when the stock was $101 and it is safe today @ $67. When there is a second retraction and it goes to $35 it well still be safe, you will get your dividend but at a much lower rate. Along with the diminished worth of your stock.
My guess is that the bad news will keep on coming and at a much faster pace in the next few weeks/months. It will be 6 months before the storm starts to subside and it will take another 6 moths before there is the faintest glimmer of change for the better.
The Bank of England is warning of the worse economic condition ever in the history of the UK. ( This after Brexit )
US unemployment was at its lowest in a century in December @ 3.6% now they are predicting a minimum of 15% unemployment.
I agree with you on the financials, the high yield makes them a decent long-term play. That might be the one thing buoying their stock price, because I don't think the full impact will hit that sector until we see mass foreclosures and a property crash... But will that be enough to cause the whole market to dive? And where will the money go instead, bonds? Metals? Or back into cash again?
I figure that tech stocks are about where they should be (doing well or holding their own), and travel and entertainment are also about where they should be (mostly in the gutter). But which sectors are overvalued enough to cause another run, and another deep drop?
I'm not saying you're wrong; I agree, the economy looks baaaaaaad. But if the market hasn't already priced that into current projections, then I'd love to know which sectors have the most glaring examples of overconfidence.