According to top hedge fund manager Anthony Scaramucci, now be a good time to put together a basket of banks.
“Focus on Bank of America and Citi ,” Scaramucci says “as leveraged plays into housing recovery in US.”
Or if you’re inclined to build a basket he says include, “Morgan, Goldman and JPMorgan – I think you’ll do quite well.”
Scramucci’s thesis is largely pegged to his belief that housing has bottomed. “House hold formation is much larger than people expected and home construction is down – that augers for a bottom,” he says.
On Wednesday the latest economic data showed Americans who signed contracts to buy new homes was at its highest level since April 2010, the last month that buyers could qualify for the federal home buying tax-credit.
Adding to the bullish thesis, home prices rose 1.0% on a seasonally adjusted basis from a month earlier, according to the Federal Housing Finance Agency's monthly home-price index.
Also theFederal Reserve renewed its committment to keeping interest rates lower for longer, a move which bodes well for the mortgage market.
"We’ve probably already seem the bottom in housing," Scaramucci adds. And that's a good thing for financials.
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Trader disclosure: On Jan 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns C; Adami owns GS; Adami owns INTC; Adami owns AGU; Adami owns MSFT; Weiss is long UGL; Weiss is long ETP; Weiss is long WLP; Weiss is long QCOM; Weiss is long BRCM; Weiss is long EUO
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