Philip Parker talks banking sector stocks
All of the big four banks have fallen over 20% from their highs from earlier this year for reasons including rights issues and a general malaise in the market. Philip Parker, Executive Chairman at Altair believes that there is one of the big four worth being overweight in an otherwise underweight sector. “We are looking for catalysts to add to our exposure, when a company says they are going to do something and they do it, we give them a big plus in our scoring process. With a backdrop which he believes will include falling interest rates Parker highlights “that it’s not a great picture for the banks but it’s not a disastrous picture, so if there is someone out there looking for a 6-7% yield, which was 5-6% a couple of weeks ago, it’s probably a good place to put a little bit of money if you are not more than 30% exposed.” Watch the video below to see which bank has ticked off two of the major three catalysts on Parker’s scoring process.