Buy Big Financials — and Regional Banks: Chief Investor

Markets traded lower on Wednesday, following a two-day rally that sent stocks up more than 2 percent. Should investors look to buy on the dips? Jack Ablin, executive vice president and chief investment officer of Harris Private Bank, and Jay Bowen, president of Bowen Hanes, shared their insights.

“The last two weeks demonstrate that structural issues really can overwhelm positive news on the economic and earnings front,” Bowen told CNBC.

Bowen said issues regarding monetary and fiscal policies still lurk and may tamper the market rally.

“I think we can still grind up higher this year,” he said, but warned investors that returns by historical standards are going to be “somewhat modest.”

Correction This Year?

In the meantime, Ablin said he sees a market rally for the first half of the year, before getting a pullback toward year-end.

“There’s still a lot of momentum, a lot of cash on the sideline and the zero percent interest rate is going to continue to push that money in,” he said.

He likes both bigfinancials and regional banks.

“We like them both. We weight the S&P sector, so, since the S&P is cap weighted, we’re going to prefer the larger over the smaller,” he said.

Ablin’s Sector Favorites:

Financials

Discretionary

Materials

Technology

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More Market Mavens:

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CNBC Data Pages:

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Top Financial Firms:

Goldman Sachs

JPMorgan Chase

Morgan Stanley

Bank of America

Wells Fargo

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Disclosures:

No immediate information was available for Ablin or his firm.

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