Michael Farr Prefers JPMorgan & Goldman Sachs: CNBC (JPM, GS)

Michael Farr, president of Farr, Miller & Washington, told CNBC that the U.S. economy is showing good signs of recovery.

Farr said that the companies are consistently improving their balance sheets. He said, “…but I’m limiting my ownership to just a couple and I’m staying underweight banks right now.”

Farr stated his preference for JPMorgan (NYSE: JPM), Goldman Sachs (NYSE: GS), and BB&T (NYSE: BBT). However, Farr said that banks are still not making money.

According to Farr, major banks still have to overcome many roadblocks. Farr said that banks have to face many challenges like growing their earnings, and getting through Fed tightening.