Financials: First In Trouble, First Out
Choosing among banks is a potentially hazardous task for an investor these days — but Jim Hardesty of Hardesty Capital Management says the financial sector will be out front, as the economy and the markets recover.
"The financials led us into this mess, and I believe they're going to be the ones that lead us out," he told CNBC. "The government has certainly come up with a pretty clever group of financial tools to try to assist a variety of financial institutions."
What he sees as the biggest need is consistency in the way government aid is designed.
"The (large) banks that are doing particularly well are JPMorgan Chase and Wells Fargo," he said. "I think to try to emulate their business models might be something the Federal Reserve might go to."
He applauded Treasury Secretary Hank Paulson's ability to be flexible in his approach to what is needed in each individual case, but his case-by-case approach has unsettled the markets.
Disclosure information for Jim Hardesty was not immediately available.