In this troubled stock market environment, it seems we can't get through a day's trading without some kind of blowup from the financial sector. Take the Cleveland-based commercial bank, KeyCorp (KEY) for example.

This stock was once a member of my Profitable Investing portfolio. When my subscribers were first recommended it, KeyCorp had a fabulous record of 43 annual dividend increases in a row. Right through the deep recessions of 1970, 1974 and 1980-82; in the face of the 1987 stock market crash, the 1990 real estate collapse, the 1998 Asia panic and the post-2000 popping of the Internet bubble -- through it all, KEY steadily raised its payout, year after year.

And now, because of an adverse tax ruling by a federal court (which will cost the company $1.1 to $1.2 billion, net of taxes), that beautiful record has gone down the drain. KEY is slashing its dividend in half, to an annual rate of 75 cents per share.

I'm shocked, dismayed and -- to be perfectly honest with you -- more than a little angry. What kind of accountants and tax lawyers did KEY hire to vet the leveraged-lease transactions that caused this problem? This outfit was widely respected as a paragon of Midwestern conservatism. Why would top management dump that reputation into the trash can?

Still, at moments like this, it's important not to let emotions (even justifiable emotions of disgust and anger) carry us away. Last Thursday's dramatic drop in KeyCorp's share price was almost certainly an overreaction. By my calculations, KEY's book value -- after both the write-off and the capital-raising announced today -- amounts to just under $18 per share.

Currently I'm not advising that my subscribers buy any more shares of KEY, but at the same time, I do want them to hold on tight for a little while until we find the perfect time to get out. In the meantime I advise that all of you dabbling with the idea of entering, or re-entering a financial stock right now, do so with a large grain of caution. Keep this seemingly golden company KeyCorp in mind--you just never can tell when the bottom will fall out of a financial stock.

Visit back often for more news and advice on the ever-changing market and how it affects your investments.