There are a lot of elements in place that suggest that the market rally is for real, said Jack Ablin, chief investment officer of Harris Private Bank.
“[However,] the last piece I’d like to see fall in line is momentum,” Ablin told CNBC. “And we’re very close to a momentum breakout for the overall market.”
Ablin said he is “underweight” financials, and that it's “still a little early” for investors to start putting their money in.
"Although financials are cheap relative to their history and their peers, if we were here a year ago, we could have made the same claim that [financials] are cheap relative to their history and peers,” he said. “We’d like to pair up that relative valuation with some momentum.”
“Financials have to rally nearly 180 percent to get back to where they were a year ago,” said Ablin. “I think there’s still a lot of room, should that rally continue for investors to profit in financials.”
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No immediate information was available for Ablin or his firm.
Top Financial Companies:
Bank of America