Why I Hate Bank Stocks: Peter Tchir
Fixed-income expert Peter Tchir says investors could be disappointed by financials in the second half.
"They're going to get warnings on what's going on in the fixed income, rates, and currency trading desk, and that's - really, when you look at what moves the needle for these banks, that's what moves the needle," he said during TheStreet's latest Trading Strategies roundtable for investors.
Investors should focus more on banks' transaction-based businesses than on the yield curve, he said, noting that there has been little long-term correlation between the yield curve and actual earnings.
"Their lending is not changing, they've made these loans," he said.
Watch more clips from July's Trading Strategies: How to Play a Risky Second Half:
- July Trading Strategies: How to Navigate a Risky Second Half
- U.S. Dollar Could Fall Another 20%
- Why This Summer Will Stay Quiet
- Systematic Issues Could Come Home to Roost in the Second Half
- The Story of the Weaker Dollar Will Continue
- Should You Start Looking at Industrials and Materials?
This article was written by a staff member of TheStreet.
