Financials ripping to all-time highs is not something we see when stocks are in a downtrend. To the contrary, this is strong evidence of risk appetite for stocks. This seems to be something that is being underappreciated right now but I think is worth pointing to, again.
There are a lot of questions about the sustainability of the uptrend in stocks. Some might even say that stocks are “stretched” or have gone “too far too fast”. But when you look at Financials, they’re just getting going now. From many different perspectives, this sector has done nothing for a long time and is just now breaking out. [Read more…]