Don't Fear Every Financial Stock

Yes, the big three stock market indices -- the Dow, S&P 500 and Nasdaq -- are all down over 20% so far this month. (Today alone, every one of the 30 stocks in the Dow fell.) But not every public company should be seen as off-limits right now.

In fact, some of the most interesting investment plays in this market can come from the unlikeliest of places. If you're looking for a compelling value play and you're not risk-averse, some financials actually look good.

Not so fast. There are some caveats, of course, to financials looking "good."

There are lots of financial stocks I wouldn't invest in -- you know, those companies that saddled themselves with subprime and watched their stock prices plummet as execs tried to grasp the reigns. And those are the obvious ones. I also want to keep my distance (for now) from the big guys who've been making a business of swallowing up the sick ones. ...