The financials and banking stocks have been some of the best performing of the reflation trade since the second half of 2020. Banks, in particular, have benefitted handsomely from the rise in yields and steepening of the
Financials Look Ripe For A Reversal
Summary
- The financials and banking stocks have been some of the best performing of the reflation trade since the second half of 2020.
- On the whole, we know banks like to make their profits by lending long term and borrowing short term.
- In summary, the risk-reward setup for banks and financials in the short term does not appear to be overly favourable, nor do these companies offer the kind of value they provided last year.
Editor and publisher of AcheronInsights.com. Investment research centered around using the business cycle to your advantage and a "jack of all trades" approach, focusing on macro, fundamentals, technicals, sentiment, and market structure.I am a CFA charterholder with a background in financial planning and investment analysis.