Is this another false dawn for financials?

FINANCIALS

Nearing the end of a strong year for the financials index, John Yakas, financials manager at Polar Capital, examines the case for banking sectors around the world.

The global financials index has risen 21% over the past year, outperforming global markets for the first time in many years, with recent months having seen an acceleration of that trend buoyed by a strong recovery in European banks. Investors’ sentiment towards the sector has also improved although it remains debatable whether new money has actually flowed into the sector.  The initial assumption is that this simply reflects the impact of the considerable central bank liquidity provided in recent months rather than any turning point in terms of the industry fundamentals. US: Stella...