JPMorgan (JPM) Takes A Contrarian Stand

In an interview with CNBC, David Kelly, Chief Market Strategist at JPMorgan (NYSE: JPM), stated that financials have so far lagged behind the other sectors. He said that 85% of non-financial companies beat the market consensus whereas only 50% of the financial firms could manage to perform this feat.

He said that the market has some concerns about the financial sector. He emphasized that currently banks are not lending enough. In response to President Obama’s proposal to put restrictions on banks, he stated that banks should be made to feel comfortable making risky loans. He claimed that risky loans per se are not wrong and are vital for the advancement of the economy.