Bull Flight
Financials Go on the Defensive
The sector is looking less and less cyclical with cheap valuations and reliable earnings.
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The U.S. financial sector has been flying high since the presidential election. The S&P 500 Financials Index is up 23.7 percent since Nov. 8 through Monday, outpacing the S&P 500 by 12.7 percentage points.
Some investors fear that the rally in financial stocks is overdone. As Dani Burger of Bloomberg News reported on Tuesday, hedge funds have reduced their exposure to financials by 15 percent since December.