Energy war-profiteers kill the banks

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Typically, banks and energy companies enjoy a similar factor rotation in stock markets, marked as cyclicals.

Both benefit as the economic cycle enters the expansion phase, which is where we should be about now.

However, the last week has witnessed a startling divergence in this relationship. Banks have suddenly gone from cyclical heroes to late-cycle bust zeroes, while the energy war profiteers are tearing it up:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.