Lloyds Banking Group (LLOY-LN)

All banks have been clobbered. He'd rather buy a Canadian bank or MS. The UK housing market is a question mark for 12 months. Lloyds will bear loan losses heavier than its peers.

He likes the European banks, and this one's in the U.K. Rising rates are a tailwind. They're years ahead of their European peers.

U.S. interest rates are rising, so European rates will follow--this will benefit financials with higher profits. He owns some European banks. There is upside with Lloyds. It has cleaned up its mess. If you're underwater here, you will be fine in the long run. You can buy it now and hold it.

Really, really cheap and has a great yield of 5.3%. One of the best capitalized banks in all of Europe. They got pounded in this whole BREXIT thing. Have come up a little since then, but is still dirt cheap. Trading at about 7.7X multiple, which is cheaper than the US banks and cheaper than anything else. They are basically a capital return story. The yield is going to stay there or go higher. Thinks there is going to be a lot of upside.