Avoid the Financial Value Trap; Think Retail
Richard Sparks thinks investors should continue to stay away from financial stocks, but he thinks there's another sector that deserves careful consideration.
"I think value sometimes is a trap," the senior equities analyst at Schaeffer's Investment Research told CNBC. "With the financials, I think it has been, all the way down...the financials still have unknowns out there; they're starting to become known...but I don't think it's yet time to jump in, wholesale, on the financials."
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So where is it time to jump in?
"Even though the consumer is being pinched by higher oil prices, higher gasoline prices, retail sales are still a big part of the economy," he said. "Retail sales have shifted down now, toward the lower-end retailers, and, in fact, one area that we like very much is the big-box retailers, such as the Wal-Marts of the world -- they have the Sam's Club -- Costco...and they've done very well, those stocks have."
