GO
Loading...

Expect Shift to Stocks: Keith Banks

Money still sitting on the sidelines will likely move into stocks soon, boosting the market, U.S. Trust President Keith Banks said Thursday.

"We think there's a lot of money that still has to shift, ultimately, from cash and fixed income, so we still feel pretty good," he said.

On CNBC's "Fast Money," Banks said that he expected earnings around $108 per share in the S&P 500, a multiple of 15.

While valuation might appear stretched, he added that people will remain in defensive stocks.

"We'd be adding new money to the more pro-cyclical areas, both because of valuation and when people get a greater comfort level, we think ultimately the rotation occurs," Banks said.

Top sectors included industrials, technology, materials — "all the industries that are more sensitive to growth here in the U.S. and, very importantly, globally," he added.

Banks said it was high time that the European Central Bank get its act together.

"You're in a three-speed world," he said. "You've got the developing nations growing at over 5 percent. China, we think, does grow 7½ to 8. The U.S., too.

"But Europe is probably negative. And the ECB has to get with the program, the reflationary program, because the divergence between the U.S. and Europe now is becoming greater and greater because of the difference between the ECB and the Fed."

Trader disclosure: On April 25, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long IBM; Joe Terranova is long SPLK; Joe Terranova is long SWN; Joe Terranova is long mini S&P June Futures; Joe Terranova is long Crude Oil; Joe Terranova is long June Futures; Stephen Weiss is long QCOM; Jon Najarian is long WDC CALLS; Jon Najarian is long AMZN CALLS; Jon Najarian is long AKAM CALLS; Jon Najarian is long ZNGA; Jon Najarian is long AMZN; Jon Najarian is long CTSH; Jon Najarian is long CTSH CALLS; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long JPM; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long VALE.

Symbol
Price
 
Change
%Change
S&P 500
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET