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Nice rally banks got there…shame if something were to happen to it.

Does the bank rally stall? Reading Warren Buffet's letter this past weekend, bank investors might wonder why Berkshire's investment heads dumped so many banks near the bottom. After all, banks are not far behind airlines and wildcatters in line to benefit from re-opening. Berkshire gave up 20% outperformance in the process: Large Financials (yellow line)… Continue reading Nice rally banks got there…shame if something were to happen to it.

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Financials outperforming tech? Yes it can continue.

The friendly folks at Goldman recently ran a regression of which sectors do well with rising rates. If you can't read the chart below, rising rates are bad for stocks in the consumer, utilities, and software sectors, while they tend to support energy and financial services. To answer why, rising rates often coincide with stronger… Continue reading Financials outperforming tech? Yes it can continue.

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Tools for Financials Investors Nervous About Inflation and Rates

We'll skip the Charlie Munder quotes; it's broadly apparent that we live in different times: US Debt: Inflation is the Only Way to Manage It (Treasury Dept) Nervousness is rational: Normally we don't see policymakers launch gargantuan, two-pronged stimulus 6 months after a 30% quarterly GDP growth, but election promises are promises, and voters on… Continue reading Tools for Financials Investors Nervous About Inflation and Rates