“As Greedy As A Pig”: Investors Pull Most From Bank Funds In A Year

Somehow I doubt this will come as a surprise to anyone, but investors yanked the most money from bank sector funds in more than year over the last week, as the Fed’s “dovish” hike exacerbated fears that popular Trump trades may have run their course.

As a reminder, this is how things have shaped up for banks since the Fed:

Banks

Yeah, so that kinda sucks, but you know what? That’s what you get for piling into (another) one-way bet on the same narrative and steadfastly refusing to take some off the table after a a good run.

Here’s what I mean about being greedy (this is the same chart, only since the election):

Banks3

Or, more poignantly…

 

More from Reuters:

Investors eased off from “Trump trade” bets during the latest week, snatching the most money from bank sector funds in more than a year and stockpiling bonds, Lipper data for U.S.-based funds showed on Thursday.

Banks were set to prosper under an administration pushing infrastructure spending along with cuts to taxes and regulation.

A hawkish response by the U.S. Federal Reserve was expected to keep interest rates rising, boosting bank earnings but keeping Treasuries under severe selling pressure.

The bearish-bond and bullish-bank trades have both diminished since November, and on Tuesday investors delivered a body blow to U.S. stocks and fled to safe-haven bonds.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s