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Our congress talk about the Federal Reserve today ahead of tomorrow's meeting in Jackson Hole Wyoming -- investors are saying that tomorrow's meeting.
Will not impact the market that you just heard that we're -- show but just the anticipation.
A -- -- into the red today so let's get to the real story with KB -- is director research Fred -- -- falls companies those.
Very close they -- you keep bliss and -- that there again.
-- traitors and has talked to their luck in front for Europe to do something in print not Ben Bernanke what do you think.
Well I think in many ways it would be better for the US markets -- the fundamentals of financial stocks if European did something in the US didn't.
Because that would really take out some risk off the table we get that risk on trade back on without some of it.
Negative side effects for further quantitative easing here.
OK so let's talk about -- overall because if we're gonna get we're not gonna get stimulus measures it seems though it -- are wrong.
The economic data kind of points now to the fact that he really cannot justify.
Quantitative easing but does he give us a -- tomorrow -- markets today don't like.
The anticipation of nothing from them.
Exactly the markets want this and are kind of demanding it but we'll see if we actually get it.
I think that's right I think the eight economic numbers don't really justify at this point in time and there's a lot of questions out there and whether it's really very effective.
At this point in time.
OK so it must talk about the banks' talk about these financial names that mean are -- financial names that you liked -- that you do not like.
Based on where we're at with interest rates which are gonna stay low for some time and the fact that you do have still.
A -- -- -- with these guys.
Exact -- -- the real issue I think a lot of people look at and -- well it's -- more money good for banks and financials and the question is no.
We're way past that point at this point in time as low flat yield curve.
It's just very painful for most banks and most life insurance stocks so we have to look for in this environment because whether or not they do -- they're probably gonna say they're gonna keep rates low for.
Practically forever right to look for banks that can still make money that environment or -- that have some kind of offset and so there are some names that we think can work in this environment okay video like.
We like US bank.
And the reason there is a big chunk of their income comes from fee income around process and so they're going to be making a good are we.
And making good good growth prospects because they're picking up a lot of the loans from some of the big European banks of the US banks are having some problems we like that with a lot.
Okay like -- think we're giving the other -- that you like have you got a pretty wide swath right here you have to be a large financial you can go mid -- if you want a break for half halfback.
If you back some other ones we like on the -- side are suntrust because.
The other thing that's happening is that the one thing Q -- does is it helps sick.
You know makes credit better because -- -- more money to pay back loans and so there's some credit recovery stories out there.
I'm such -- suntrust we we think can really work in this kind of environment there's a number of a banks we can fix you know -- smaller ones you know we have.
Private bank in the midwest.
-- we have Citi national Southern California with got a lot of these midsize banks were in a position today to take market share of the big ones and continue to get that credit recovery.
A case of -- -- on that likened disliked may be like in some of the smaller names a smaller banking needs is there a larger scale banking it don't like right now.
Well I don't like Bank of America right now I think it's a bank fit.
Is actually done a lot of good things than last year but it's that a lot of good things for its bondholders.
And it's regulators and that has not been good for equity holders because they're reducing their ability to earn money going forward.
Are at their what would it would be his specifically -- Bank of America were decent at their abilities and nine other Bank of America has try to mean.
The credit card business -- -- is one example that seems to have been doing OK don't think so.
Credit card business doing OK and Merrill Lynch is actually doing OK and -- -- environment but they've essentially shut down their mortgage bank if you look at them compared to Wells Fargo.
They've gone in the last year from 18% of the mortgage market to six Wells Fargo is gone from twenty to thirty.
I and that means he just can't earn money in that business.
Do you think the Wells Fargo is better position because of -- geographic location of the majority alone which is frankly the last coasted -- that's about I think for pro Wells Fargo.
I think it's a well there's two things relative to BankAmerica one as it's confined to the US which we think is better off.
Secondly again we think that this credit recovery story where this money flooding in the economy's good and that's actually good for the West Coast.
And Rollins -- -- KB Debbie is director of research with a lot of names like that thank you very much thank you.
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