Goldman Sachs posted numbers that surprised to the upside on Tuesday, but will other financial companies outperform as well?
Matt McCormick, banking analyst at Bahl & Gaynor, and David Stepherson, senior portfolio manager of Hardesty Capital Management, discussed Goldman’s earnings numbers and their expectations on big banks. (For stock recommendations, see below.)
“We need more information [from banks] but we’re not getting it,” Stepherson told CNBC.
Lack of disclosure "was what got us into this mess in the first place and it’s not much better” now, he believes.
McCormick noted Goldman Sachs took a $700 million charge for their commercial real estate, which many investors fear is the next shoe to drop.
“There are further issues out there that in the general financial sense, this is not the sector that is going to lead us out,” said McCormick. “It’s great that you’re seeing a short-term trade, but I doubt that this is a great investment opportunity.”
Hudson City Banc
Bank of America
No immediate information was available for McCormick or Stepherson.