It’s a big week for brokerages. Goldman Sachs reports Q4 earnings on Tuesday, with Lehman Brothers and Bear Stearns reporting Thursday. Over the past three years, investors have enjoyed record earnings from this group – but could the best still be yet to come?
On "Closing Bell," Maria Bartiromo discussed the possibility with Frederick Lane, chairman and CEO of investment bank Lane, Berry & Co., and Jeff Harte, managing director in equity research at Sandler O’Neill.
Lane said the party is not over. Maybe it's less lavish, but all the fundamentals look very positive. He says we have an aging population, and this is creating a glut of capital - and capital has to be put to work.
He also said, "I think the rate of growth of earnings is going to slow down - but the fundamentals remain very positive. For a three to five year investor, these stocks are a good place to be."
Harte said he's very bullish. "Looking forward to '07," he says, "these stocks won't make a straight line up - we will see some cracks - but I think you'll see a few months of solid gains before you have to worry about a correction."