Richard Suttmeier, chief market strategist at Rightside.com, told CNBC’s “Closing Bell” that he believes community and regional banks carry the most risk from the current real estate downturn.
“I definitely think the financial sector is the most vulnerable sector in the market,” Suttmeier said Tuesday. “We’re looking at an over-valued sector getting weaker because of the stress in the banking system over the last five years given the troubles relative to the real estate market.”
Benjamin Pace, chief investment officer at Deutsche Bank, said he’s currently over-weighted in healthcare.
He said semiconductors have become a commodity and prices are falling despite strong orders. But he believes software and telecommunications equipment makers will show strong first quarter earnings and throughout the year.