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Don't Fear Financials as Regional Banks Ready for More Gains


Valuations remain fair and economic growth is accelerating so its reasonable to expect stocks to continue higher in the second half, said Stephen Parker, Head of Multi-Asset Class Strategies for J.P. Morgan Private Bank. Parker said he expects stocks to finish 2014 with high single digit, or low double digit gains. He said he especially likes regional banks which are leveraged to the recovery and will not be affected by slow bond trading or increased regulation like the money center banks. Finally, Parker is bullish on Japanese stocks, saying they are cheap and corporate governance is improving.