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Matrix Asset Advisors' David Katz told CNBC on Wednesday he believes financial stocks are positioned well to have a strong rebound in 2021.
The sector has lagged many areas of the market this year, as investors worried about credit risk related to the coronavirus pandemic-induced economic downturn. However, Katz said on "The Exchange" that the dark cloud over banks is dissipating as the U.S. economy improves and the regulatory environment under President-elect Joe Biden takes shape.
"Their loan portfolios are very good. The yield curve is steepening. Janet Yellen as the head of the Treasury is a net positive," Katz said, referencing the former Federal Reserve chair who has been nominated to lead the Treasury Department.