"We have no doubt there will be an economic recovery, but we may need to take more pain before we get there," said Pieter Spierings, who helps manage 7 billion euros at Kempen & Co. in Amsterdam.
"We don't think this rally (in phone-related stocks) can last."
Spierings has been selling phone shares and buying bank stocks such as UBS and Deutsche Bank AG.
While interest-rate cuts typically boost phone-equipment stocks because they increase the present value of companies' future profit streams, recent share-price gains already take those reductions into account, said Nokhasteh.
ABN Amro and other banks have dropped this year as economic weakness raised concern their customers will struggle to repay debts. Those concerns will probably lessen if rate cuts spark a recovery, investors say.
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