Excerpt from Barron’s latest article quoting DataTrek Research:
…. “More worrisome is the recent underperformance of financials. They’ve dropped 2% during the past month. And it’s not just in the U.S. that they’re having problems. DataTrek’s Nicholas Colas observes that they’ve been “underperforming across the globe, held back by low rates (everywhere), unfinished reforms (Europe) and leverage concerns (China).” He expects that to continue, which could continue the Buy America trade since the S&P 500 has just 13% in financials, while emerging markets have 22%. “We recommend across-the-board underweights to Financials, and remain wary of EAFE/EM because of their overexposure here,” Colas says”…..
Read the whole article here in Barron’s!