The recent rally in banking stocks is exhausted and the sector may not pass its highs for the rest of the year, Chris Locke, managing director of Oystertrade.com Management, told CNBC.com.
“As we come through the summer months, from July and particularly August onwards, I would expect to see deterioration coming back into the markets,” Locke said while looking at the US banking index.
Investors should be looking to be out of the stock market completely, not just financial stocks, by July, Locke said. The one exception is gold mining stocks, according to Locke.
“I do not expect this bear market to see the worst until we’re into 2010. Beware of bearish surprises, this to me is a bear-market rally,” he said.
- Watch the video above to see Chris Locke’s expectations for the Swiss franc.
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