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Market Has Hit Bottom: Sandler O'Neill's Harte

Sandler O'Neill principal Jeffery Harte said the market has hit its low point and that means risk assets, including the banks he covers, will do well into early next year.

"I think risk assets are going to do pretty good going into the end of the year and the first quarter of next year, and that specifically means the companies I cover," Harte told CNBC Thursday.

His top picks in financials include Goldman Sachs , Morgan Stanley, and Citigroup.

Now, he said, he is seeing more of an appetite for risk and investors are looking at bank stocks again.

"This summer, I got the feeling a lot of investors had thrown their hands up in the air with financials being unanalyzable" because of volatility, he said. "What I would say is, over the last month or so, that tide has changed some. I’ve been getting more and more incoming calls about the fundamentals and how do I think about this and how do I think about that."

Still, Harte said, with continued volatility now in Europe "this is not a market for the weak of heart."

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Disclosures:

Jeffery Harte does not own shares but Sandler O'Neill has investment banking relationships with the companies mentioned.

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