As we face the second half of 2009, how should investors play financials?
Dick Bove of Rochdale Securities offered CNBC his take on bank stocks.
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"The whole key is to stick with capital-markets oriented companies," Bove said.
"And be very light in terms of looking at the regionals, particularly those in areas of the country that are troubled by either the auto industry or the building industry."
He counsels investors to seek firms that can take advantage of "significant growth in the money supply" — and beware of banks doing business "where economic troubles are causing loan losses."
How does this break down into specific stocks?
"I like the Goldman Sachses, the Morgan Stanleys and the JPMorgans," Bove said.
He cautioned against regionals KeyCorp and Marshall & Ilsley.
Stocks Mentioned in This Blog:
Marshall & Ilsley
Disclosure information was not available for Bove or his company.