How quickly will the European sovereign debt crisis affect U.S. banks and what should investors to protect their portfolios? Paul Miller, group head of financial services at FBR Capital Markets, and Alan Lancz, president at Alan B. Lancz & Associates, shared their insights.
“American banks don’t have a lot of exposure to the sovereign debt," Miller told CNBC.
"They do have exposure to these sovereign banks out there, but not that extensively."
Miller said the big problem is the overall influence of the European credit markets freezing up, which might eventually start to creep into the U.S.
In the meantime, Lancz said yesterday’s extreme market selloff was a “big blow” to investor confidence.
“The majority of the earnings growth is based on the financial sector and if financial regulatory reform changes the playing field, then it’s going to strike at the heart of the most lucrative segments."
"These analysts are going to have to change the earnings model and then all of a sudden, the U.S. stock market doesn’t look as cheap as before,” he said.
Lancz recommended that investors buy on weakness, but “very selectively.”
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No immediate information was available for Lancz or Miller.