NEW YORK — Shares of financial companies declined Tuesday, weighed down by concerns about the Federal Reserve's latest interest-rate meeting and as Rochdale Securities analyst Dick Bove said the rebound in bank stocks is driven by psychology rather than fundamentals.

"Investors should take short-term profits because the stocks seem to have moved way beyond the earnings potential of the companies," Bove told Dow Jones Newswires, adding that even though he feels positive about the long-term outlook for the industry, the stocks have "moved too far too fast" on little change in earnings, including expectations the third and fourth quarters won't show improvements.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.