“I think the bar was set pretty high by JPMorgan ,” Ablin told CNBC.
“I don’t see anything wrong with Goldman’s numbers…so my sense is that there were just a lot of high expectations built into Goldman.”
Ablin said he likes the financial sector, and hopes that the fiscal stimulus will continue to provide tailwind to the economy and profits.
In addition to the financial sector, Ablin also likes materials, consumer discretionary and technology.
CNBC Data Pages:
“For the next 12 months, we’re in pretty good shape,” said Ablin. “But we’ve got a lot of artificial stimulus and roughly in June, we’re going to have to take the patient off of life support and see what we have left.”
“We’re going to ultimately have inflation...so I think we still have three or four years of a buy on inflation and that’s why bonds will continue to do okay, but at some point…we’re going to have to reposition our portfolio to hedge against higher inflation.”
What Strategists Say on Financials:
Ablin’s firm, Harris Private Bank, owns shares of Goldman Sachs.