by Chris Weston, IG
Virtually every research house has a ‘buy’ or ‘outperform’ call on the US financial sector and most feel that if we are genuinely going to see better growth and inflation under a Trump administration then there is no better sector to own than financials. Clearly this view is already playing out and looking at the S&P 500 sub-sectors since Trump’s election win, we can see the investment bank sub-sector +30.7%, regional banks +25.1% and diversified banks +23.7%.
Another way to trade the financial space is through the KBE ETF (SPDR S&P Bank ETF), which has gained 26% in the same period.