Does Financials Rally = Market Bottom?
Financial stocks are rallying Tuesday. Is this the start of the market bottom — or merely a bear-market rally?
Frederic Dickson, chief market strategist at D.A. Davidson & Co., and Jack Ablin, chief investment officer at Harris Private Bank offered their insights to CNBC.
"We continue to see this as a bottom-formation play," said Dickson.
- 13 Top Financials — 24-Hour CNBC Data
He doesn't believe the full market rebound will happen until a certain condition is met: "We're looking for improvement in the credit markets." He augured small positive "trickle-in effects" from the Obama administration's stimulus plans giving the markets a small lift in "April and May."
Ablin was less certain, except for short-term moves: "There should be a little bounce to the upside," he said.
But as far as predicting the bottom and full recovery, he confessed, "I don't have a clue. Gauging my own psychology is impossible, let alone the market's psychology."
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They Are The Champions:
Citigroup
Bank of America
JPMorgan Chase
HSBC
Wells Fargo
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Disclosures:
Disclosure information was not available for Dickson, Ablin or their companies.
