Bank Stocks Boring in 3rd Quarter: Meredith Whitney
Don't expect anything exciting in banking stocks this third quarter. There will be no big suprises in the sector, analyst Meredith Whitney, of Meredith Whitney Advising Group, told CNBC Tuesday.
"Bank stocks are just boring at this point, they're not going to go up that much, they're not going to go down that much," said Whitney.
"The U.S. and Europe, which has been 70 percent of the revenue for banks, brokers, those markets are contracting. So unless you have a vibrant external operation outside the U.S. like a Goldman Sachs , it's going to be tougher."
Whitney also commented on how the U.S. middle class is still getting squeezed.
"We have to reckon with the fact that a very large portion of the U.S. consumer base, which is really middle class consumers, who were extended credit for the first time in huge swaths, are being debanked from the system, so they're deleveraging. Rich people can borrow like they borrowed before, but they don't need the money... It's that middle group that is actually getting squeezed and getting pushed down in terms of the demographic that is going to put a lot of pressure on the U.S. economy."
So what stocks does Whitney like?
"I like anything that embraces payments. I very much like Visa, Mastercard," she said.
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