President Obama will be urging the Congress on Thursday not to let the chance for an overhaul of Wall Street regulations slip away—and will warn of the risk of another financial crisis if reforms are not enacted. What does this mean for financial stocks? Kevin Caron, market strategist at Stifel Nicolaus, shared his insights.
“Since this bill was introduced several weeks ago, financials have performed very strong,” Caron told CNBC.
“They’ve outperformed the market, so there’s nothing I see that’s going to be substantive coming from the reform that would disrupt the apple cart.”
Caron also said the government has been acting more as a “parent than a referee.”
“And they’re very interested in making sure that the banking system is on the right track—as it appears to be now—and creating an environment where they can make profits and earn their way out of a very deep hole,” he said.
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No immediate information was available for Caron or his firm.