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Time to Move Back Into Financials: Strategist

Tuesday, 19 May 2009 | 11:05 AM ET

Dan Greenhaus of Miller Tabak and Scott Minerd of Guggenheim Partners discussed their outlooks on the economy.

Today's Market Action
Dan Greenhaus, of Miller Tabak; Scott Minerd, of Guggenheim Partners; and Duncan Neiderauer, of NYSE Euronext, discuss today's market action.

“I think we’re bottoming out in the housing market and it’s a good leading indicator that’s telling us that the economy’s getting ready to turn,” Minerd told CNBC.

He said that this is a bull market and investors should be taking advantage of any weakness as a buying opportunity.

Greenhaus, on the other hand, said he remains cautious. With the persisting concerns about the housing market, consumers and the overall debt level, he does not think this is a bull market.

(Understand their thinking: Watch the full interview)

“Simply purchasing some equities because you’re seeing stabilization may not necessarily pay off in the end,” Greenhaus said.

He advised investors to stay in a defensive position, but Minerd had a forward-looking recommendation.

Minerd’s Recommendation:

Financials—"We’re slowly moving money into financials," said Minerd. "Especially the good financials. The institutions which haven’t been dragged down with the subprime lending, and big credit card portfolios."

Disclosure:

No immediate information was available for Greenhaus or Minerd.

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Top Financials in the News:

Citigroup

Bank of America

State Street

AIG

Wells Fargo

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Disclaimer

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AFF
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BAC
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C
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STT
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WFC
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