There’s Still 'Plenty to Do in Financials': Stock Picker

Financials were among the biggest sector losers last week. Is this a buying opportunity for investors or a sign to avoid the group? Tyler Dann, senior research analyst at Invesco, and Fred Cannon, co-director of research and chief equity strategist at KBW, discussed their insights.

Financials: Buy or Avoid?
Financials: Buy or Avoid?   

“We have an accommodative Fed, and it looks like, because of Greece we’re going to stay in that position for a while. And the financials offer some great opportunities,” Cannon told CNBC.

Cannon also said he is not worried about the likely upcoming financial reform.

“We’re not going to go to a situation where the financial industries are not going to make money in the U.S."

"It’s going to be a level playing field and if you pick the right banks and stocks, you can make a lot of money during the adverse situation,” Cannon said.

In the meantime, Dann said financials are in a situation where investors aren’t given much confidence or clarity—but he believes that there’s still “plenty to do in financials.”

He likes Progressive , American Express and Legg Mason .

Scorecard — What They Said:

  • Cannon's Previous Appearance on CNBC (Mar. 30, 2010)
  • Dann's Previous Appearance on CNBC (Jan. 29, 2010)

More Market Intelligence:

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Top Financial Firms:

Goldman Sachs


Bank of America

Morgan Stanley



Dann owns shares of AXP, PGR and LM via owning shares in Invesco Charter Fund.

Dann’s Invesco Charter Fund owns more than 1 percent outstanding shares in LM and PGR.

No immediate information was available for Cannon or his firm.