Financial Stocks: Fifth Third's Portfolio Strategy

After good news from Goldman Sachs and Wells Fargo, should you buy the financials?

Jon Fisher, portfolio manager at Fifth Third Asset Management, offered CNBC his outlook for bank stocks.

"The true strength in the numbers that we've seen has come from the capital markets," Fisher said. "The volume of mortgage applications that we've seen, with the government manipulating mortgage rates over the past few months, has helped."

But Fisher sees a darker side to the good news:

"The core banking business of Wells Fargo — when they announced positive [results] — you see continued bad loan deterioration. JPMorgan talked about bad credit deterioration. The bad loan situation will get worse."

So what's an investor to do?


"We have particpated in the [financials] rally since march," Fisher noted. His firm owns and will continue to own — for the foreseeable future — JPMorgan Chase, BlackRock, US Bancorp and Northern Trust .

Fisher has a caveat for would-be buyers: He says no one should buy right before earnings announcements. "Wait to hear their guidance," he advises.

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Both Fisher and his firm hold a significant number of shares in the above-mentioned firms: JPMorgan Chase, BlackRock, US Bancorp and Northern Trust.