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."
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."
Disclosure information for Richard Sparks was not immediately available.