Financial Rotation
Wednesday, July 12th, 2017 Categories: Financials, QE / QT, Rotation, Yield curve
No evidence of co-ordinated global tightening
The new big idea is that Financials are responding to the prospect of a co-ordinated tightening of monetary policy which will steepen yield curves round the world. At a sector level, there is some superficial evidence to support this, but when we look are individual stocks, particularly in Europe, we see that there are other and better explanations.