patrick spencer is still with us. ick, you said, a lot of the oil companies' share prices increased significantly, but from a low base. there must be better valued stocks out there. patrick: sure. in terms of the u.s. market or generally? francine: give me your three best shots at making money this year. patrick: it has got to be in equities. i've been in equities for 30 plus years. it is still the only wealth creator left in this business. francine: with negative rates, you're not wrong. patrick: certainly, that pushes you more into my point that i was trying to make earlier. in the u.s., you've got 2.2% yields on the s&p, 1.8% in 10-year treasuries. --ply put, that is going to you talk about negative rates. cash is being structurally attacked through negative interest rates. holding cash doesn't do you could anymore. you've got to go back into a wealth creating machine, which is equities. u.s. equities, 2.2%. bonds, 1.1%. markets are always up the following year when you have this disparity. francine: patrick, thank

joining us for a preview of the bank earnings season is patrick spencer. pleasure to see you. thanks for joining us this morning. so much to talk about and finally we get a break from the central banks here. we can really get into the core of earnings season. there's so many expectations to the downside when it comes to what banks will report. got to wonder if they can only surprise to the upside here. >> well, first of all, you've got to look at the backdrop, what the banks have done in the first quarter. i looked this morning on a global basis. in dollar terms, the banks are down 16% in the quarter. they've had a horrid quarter. there's been worries about energy loans. there's been worry about negative interest rates and also capital, especially the nonperforming loans in the oil area. if there's going to be any contain on. having said that, we're in invest ourselves. the outlook will get better, certainly for jpmorgan. loans, i think, will be up 5% to 6%. given the valuation, banks are trading less than one times tangible book. if you think a lot of people are hiding in con