Charles Bobrinskoy, vice chairman of well-known value investor John Rogers's Ariel Funds, was on CNBC to discuss his views on US banks after the recent run in the stock prices. He also discussed the improving housing market and its impact on US banks that are slated to release their earnings next week.
-- He thinks that banks will benefit from recovery in the housing market.
-- He says banks have done whatever they could internally but now it is a matter of the revenue picture improving, which he believes will be very soon.
-- The housing market will become better and interest rates will not remain zero forever.
-- His top pick is Morgan Stanley (MS).
-- Goldman Sachs (GS) is not crazy cheap as it was a year ago but it is still a good company.
-- Blackstone and KKR are his other top picks.
-- WFC is not cheap and is very popular so he's not going near it.
-- He thinks investment banks will be producing double digit returns on equity and are still cheap versus WFC, so they're more attractive investments.
-- As interest rates go above, all banks will be making lot of money.
Credit and Source: CNBC
Here is the video: