Dick Bove Disappointed by Market Reaction to Q2 Bank Results, Remains Bullish Into 2H
Benzinga picked the brain of Rafferty Capital's big-bank bull Dick Bove Thursday morning.
With the heart of the big-bank earnings season now concluded, Bove was full of insightful comments into how the major U.S. financial players performed during the second quarter.
Bove conveyed a bit of disappointment when asked about the broad performance of the big banks. He said there were some "nice numbers," but admitted there seemed to be a little something missing. Despite the apparent apprehension, Bove reassured he is expecting some strength in quarterly results to follow through into the remainder of 2013.
The majority of the Rafferty Capital analyst's comments were not focused on the actual figures. Probably more importantly, Bove instead opined on the market's reaction to the results -- the Financial SPDR ETF (NYSE: XLF) is up seven percent over the last month or so. Bove said he was "shocked," pointing out that just several quarters ago, short sellers would have been all over these results. Bove feels the recent market response suggests investors "can't get enough" of the financials.
Bove seemed concerned investors may now be jumping into the big banks for the wrong reasons.
Financial stocks over the last week seem to be echoing Bove's surprise: these stocks (as tracked by the XLF) have pulled back nearly 2 percent from the recent highs.
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