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JPMorgan beats; buy bank stocks as dividend play - Bapis

Wednesday, April 13, 2016 - 03:53

JPMorgan Chase's quarterly profit and revenue fell but beat estimates. Michael Bapis of HighTower says, it's time to buy bank stocks.

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A rally in financial stocks boosting Wall Street for a look at the market action we're joined by Michael back with he's a partner at the Baptist group that hiked our. Welcome back Michael that JPMorgan's profit and revenues they fell to drop rather sharply. All but beat estimates that investors are betting that stock up as well as other banks stuff. Investors' reaction is it justified. Given that those estimates were lowered so. We've become. Society that is so focused on the short term and so estimates are lower but we'd be to lower estimates there were reasons people lowered their estimates the reason the banks lower their estimates. Positive news drives the market higher negative news obviously doesn't and we have so many experts that. Are split on the waited on it and go oh would you recommend your clocks that hit the bank stocks have been beaten pretty badly. I like the dividend play depending on which executives you could see some of the regionals continue to perform well. And people look at for you'll right now that there. Fixed income market that particular environment you are just so compressed right now. Dividend yield helps. Canada broader markets have a sustained rally without the participation of financial stocks I don't think so I think yeah participation from financial stocks. And from base. To continue. Of rising forty now about 40000 workers walked off the job today and it's expected possibly. Impact this service on phone TV. And the Internet should the stock is down slightly should rise and investors. The short term in me. Ward a little bit of a worry about 40000. Workers striking that's gonna affect some sort of a service model the flip side of it. Verizon executives is that they've traced effort trained experts. Outside of the people that are striking so long term I don't think are possible stock. Depends on the portfolio but they have a nice dividend yield and and we think. Technologies gonna lead the way for the next. Ten years and luckily you're looking primarily one or a couple of JPMorgan earlier that is just the the matter being asked to see that there lowered. So what's your outlook in terms this earnings season Wimbledon. We're seeing. More positive than negative people were concerned going into it we. The Fed has also said it don't make too much of this economic data of the short term. Of the first quarter we are positive longer term and I think. Look Waller our economy's not growing is maybe robustly. As we like to see it grow it is growing China is still growing at five rather than 8% some of it has slowed down but. We're still moving in the right direction in terms of the slowdown in the economy and rather slow earnings are expected be weak this time offenders rather cautious about. Raising rates so how should investors themselves at all here but you know hey if the long term as it appears to care for what he's telling your eyes. Reevaluate your risk CC if you have the appetite for this risk we we its interest in if you closed your eyes on January 1. And then opened them on April 1 you would see of 1% of fire but every time we had a temper and a 12%. Volatility. Upside and downside on the S&P 500 so you've got re evaluate your risk. Maybe it's about asset allocation tweaks are necessary right now and want to recommend as a hedge. Hedge we try to look for non correlated assets something that has a very low beta too obvious if you were to do whatever indexer. You're looking for. There're there're some good hedge funds that that. Pitch if you would so just not correlated assets would like to try to. Remove the correlation on twenty to 30% of sort portfolio. Thanks Michael thank Fred. Our thanks to Michael Mathis of high tower I'm Fred Katayama this is.

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JPMorgan beats; buy bank stocks as dividend play - Bapis

Wednesday, April 13, 2016 - 03:53