Kevin O'Leary, chairman of O'Shares Investments, thinks investors are getting suckered into buying bank stocks yet again.
"If you buy the financials now — and they've had a pretty significant move — this will be the fifth time you got sucked in by rumors of Fed hikes," said the businessman. "And so every time you go into this sector, and the Fed doesn't move, you get clocked 8 to 10 percent and it's happening again," he said.
Since closing at the lows of the year in February, the S&P financial sector is up nearly 22 percent.
Apart from his views on financials, O'Leary, who's best known for his role on the TV show "Shark Tank," shares his investment strategy for other hot sectors like utilities and telecoms. PRO subscribers can watch this interview, which originally broadcast on "Fast Money Halftime Report."