Exchange-traded fund investors are bailing on bank stocks in a big way just before the earnings season kicks off.
More than $2.5 billion has exited the $42 billion Financial Select Sector SPDR Fund (XLF) last week, putting the ETF on track for the largest one-week outflow since June 2020, according to data compiled by Bloomberg. Prior to last Friday’s 1.2% gain, XLF had dropped for seven straight days.
While growing anxiety about a potential recession — amplified by the Treasury yield curve’s recent brief inversion — explains the distaste for financial stocks, that underperformance sets the sector up for a rebound as the biggest banks take the stage, according to Wells Fargo. JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. are among the firms reporting results next week.
“If we’re talking about recession, we’re talking about credit. If credit goes bad, that’s a problem,” Chris Harvey, head of equity strategy at Wells Fargo, said in a Bloomberg Television interview. “At the end of the day, we don’t think the underlying fundamentals are going to be as bad as feared, we don’t think guidance will be as bad as feared, and what we’re going to see is a relief rally for the banks.”
While XLF initially rode the rise Treasury yields higher, performance has recently sputtered. XLF has declined nearly 3% so far this year, compared with a 5.5% drop for the S&P 500.
For service-focused financial advisors who might take their well-being for granted, regular check-ins and active listening from the top can provide a powerful recharge.
With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.
Meanwhile, $34 billion independent First Manhattan welcomed New Jersey-based Roanoke Asset Management, an RIA firm with more than 40 years of history.
Most notably, two chief compliance officers have also recently left the firm.
The latest team to join Cetera, led by a 29-year veteran professional, arrives with roughly $380 million in AUA from OSJ Private Advisor Group.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
