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So big banks were big theme in 2011.
But we're get greater ring in the new year and that means even more big -- -- is in 2012.
Is gonna be good or bad to answer that Anton -- -- -- he's president and chief investment officer -- -- capital advisors.
He manages the -- financial industries fund.
In the financial services -- this is your bread and butter.
And -- in the last year and -- the banks unfairly hit just because of the -- in Europe.
Well certainly because if you really look at the losses book by US banks related to anything in Europe -- really haven't been -- The capital markets have been slower -- hurt the bigger banks in terms of capital markets activity.
But again you really haven't seen any losses materialized people are really afraid of something that may or may not happen in the future and unfortunately given their popularity -- ETFs.
Everything got slammed including regional banks which have you know actually no exposure at all.
And certainly in the micro cap banks which you know is where I do a lot of my hunting in terms of looking for emanate markets so when you -- the currencies of the buyers who have less deals.
But you -- thank -- it.
What will be I important driver for potential rally in bank stocks -- -- think that that will be one thing is in today activity in the new year.
Yeah I I think that you know any activity we driven by a whole lot of factors -- -- -- -- -- yield curve and revenue growth is hard to come by.
Dodd-Frank is created some real onerous burdens on the small banks in particular.
They have to hire more compliance people so makes it pretty hard for them to justify -- remain independent.
You know certainly the government's -- -- -- Palestinians in the smaller banks who like get it back the capital markets -- open for them the broad issue stock.
So again I think you see a lot of sellers happening out of the really small banks and micro caps and and I think that some value -- created by some of the guys are doing the buying here but.
What about the potential headwinds for some of the bigger names you've gotten.
Worries about Europe -- not gonna go away.
Regulation you talk about Dodd-Frank.
The election year.
Investor flows like a lack of willingness to and financial stocks I can go on huge shock you when you're gonna want it whenever you -- Well I mean you know I think the good thing is is that you know we all know all of those things and -- from a shock perspective.
You know there's a lot of bad stuff priced in the valuations.
The other thing it's really import from a technical perspective is nobody does own financials.
And and because they don't when they outperform.
Their becomes a chicks if you go back to.
March of 09 with the first names really recovered -- where the financials because nobody owned them they were hated -- line.
We also the federal reserve stress test that's going to be going on.
On the biggest banks -- fifty billion in assets.
And those results we released in March I expect -- -- -- dividend increases a lot of buybacks.
Sure the recent disappointments in their but in general I think you see a lot of return of capital.
He's a big banks actually have quite a bit of that they're really good shape there -- no comparison of the European banks which.
Don't have a lot of capital solve a lot of leverage.
I get a lot of credit to Geithner and for helping recap the banks in 2009 getting a razor capital ratios.
And I think that our banks are gonna pretty good shape from my past -- -- C.
Yet people are looking for and com you're clearly not getting it and in US -- so you're right that could certainly help them.
-- -- great to talk to you as always happy new year and time since we'll have you back very very -- and conscience of the Burnham financial funds.
And moving on and looking overseas the funeral of former North Korean leader Kim Jong-Il.
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