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Howard Capital Management CEO and CIO Vance Howard joins Wealth host Brad Smith to discuss his earnings outlook amid the Los Angeles wildfires.
Howard warns that the Southern California fires could trigger bank defaults, potentially impacting earnings. "I don't think people have calculated that in yet because it just happened over the past three or four or five days," he explains.
He advocates "patience" with bank stocks, noting that if defaults increase, earnings could be affected through the third and fourth quarters. With nearly 12,000 homes lost in Los Angeles, Howard predicts some homeowners may walk away from their mortgage obligations. "That's something to think about," he comments.
JPMorgan Chase (JPM) touted record annual profits of $58 billion for 2024 in its latest earnings results.
Looking beyond the banking sector, Howard identifies Salesforce (CRM) as a potential outperformer for 2025.
Follow along Yahoo Finance's recent coverage of the Southern California forest fires and the insurance industry:
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This post was written by Angel Smith