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