Why Banking Stocks Are a Buy: Fund Manager

The government is starting to purchase stakes in financials, so should investors follow suit? Michael Cuggino, manager of the Permanent Portfolio Fund, says yes.

(Click here for the full interview)

“If you’re a long-term investor it is a good buying opportunity," he told CNBC. "I think if you’re a trader you should have bought a couple of days ago."

"The long-term fundaments are sound. These companies are the firms that provide the oil for the world’s economic engines—they’re not going away. The federal government has indicated [as much] in their aggressive move to step in and shore them up to the extent they felt they needed to,” he added.

Cuggino likes Morgan Stanley , Bank of New York Mellon , State Street and Charles Schwab .

CNBC.com Tools: