Is It Time To Buy Bank Stocks? Bill Baruch on J.P. Morgan and Bank of America

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Bill Baruch joined CNBC’s Halftime Report to discuss the financials sector and whether it’s time to get more bank exposure in portfolios.

~TRANSCRIPT~

Bill Baruch has been a pretty active trader. Part of our investment committee, of course. He joins us right now again because he’s bought Jp morgan. So you initiated a small position in JPM yesterday, I’m told, correct?

That’s right. And, you know, at the end of the day, Jp morgan is the undisputed heavyweight champion in banking. We’ve owned Bank of America, but I’ve been hesitant to build in that position sitting in the cellar, bottom five of our over 30 stocks. But I like what we’ve seen in rates. I like some of the environment coming ahead in year two of the bull market, which we’re heading into is, I think, financial tools and health care can outperform.

So I want to get more banking in there. Jp morgan, I mean, they’ve guided strong a net interest income and I just think that they’re they’re going to be the leader. So I think America may have some catch up to play here, but in case it doesn’t. I think Jp morgan needs to be in the portfolio. So adding the two together there in the middle of the pack, even though they both set the bottom.

Yeah, I’m looking at financials. I mean, overall, you know, they just can’t get much traction this, you know, issue of where rates are and where projections are and where the economy might be going. Seems to just continue to hamper this group, you know? So a good week here, a good week there that the more medium term picture looks dicey, though.

No, absolutely. And my fear here is you look at Bank of America and you overlay that with the ten year Treasury. I mean, they’re trading leg and leg. So you think if you’re buying financials here, you have to think that we could be tapping in yields. And I do. In the commodity fund that I run, I am on two year futures at the Stanley Druckenmiller trade.

I’ve been in that just before he was talking about it too. So I’m positive here that I think we’re turning in the rate environment. Big ten year auction coming up today, but it’s not about right here, right now. I think as we head into next year, a lot of this is going to subside again, 131 billion in unrealized losses in Bank of America is an eyesore.

So that’s why I’m hesitant to add to that. But I want a little more financial exposure in Adam J.P. Morgan.

All right, good stuff. And we appreciate you coming on and telling us about that. We’ll see you back on the desk soon.

~END TRANSCRIPT~


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500


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