Why US Financial Stocks will outperform

The US Financial sector has been at the height of the Trump trade, rising nearly 23%, since the surprising outcome on November 8th, 2016. While the performance of the group has been stellar, the sector has actually under performed the broader S&P 500 YTD in 2017 by over 4%. We view this pause as a significant opportunity to add exposure to this group.   PDF Charts click here 

  • Yield Curve is flattening but financial sector is more sensitive to short end of the curve which is breaking out
  • After the post election surge, the financial stocks have paused and look poised to reaccelerate
  • Seasonal period a headwind but opportunity to accumulate into year end
  • Small Business Optimism signalling outperformance of Banks
  • Valuations remain attractive for the sector
  • Few signs of stress in financial stocks credit
  • Insurance, Capital Markets and Banks look like most attractive groups


This document may contain certain forward-looking statements. These statements may relate to future events or future performance and reflect management’s current expectations. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Neither the Funds nor their respective managers assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances. Actual results may differ materially from any forward-looking statement. Historical results and trends should not be taken as indicative of future operations. The Fund is not guaranteed, its value changes frequently and past performance may not be repeated. Unless otherwise indicated and except for returns for period less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data take into account distributions or dividends paid to unit holders but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.

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