UBS announced a net profit of $1.4 billion for the second quarter of 2019.Earningsread more
Top Wall Street strategist Tony Dwyer spoke at length about his favorite sectors, and why he believes these groups are poised to outperform in the months ahead. One of his recommendations is the financials sector, which until recently was pricing in a grim drop in profitability because of low interest rates.
"The last time the yield curve got as flat as it is now, or even a little bit flatter, and the 10-year-note yield dropped to the current level of under 1.5 percent, happened to be the best time to get long financials, " said Dwyer. "Unless you believe that the Fed is going to aggressively raise rates, to the point where the 10-year trades through the short end, our guess is a lot of the negative, or the pessimism about rates is already reflected in the financials," he added.
Financials are little changed for 2016, the worst performance among the major sectors in the .
Watch the video to find out which other stocks the strategist recommends. And to see the full PRO Talks interview with Dywer, where he discusses the overall investment philosophy he's developed over three decades on Wall Street, click here.