Buying bank stocks before a recession used to be madness. Not anymore
CNN
Investors are bucking tradition this year by piling into big bank stocks just as major economies are expected to either slow down or fall into recession.
The Stoxx Europe 600 Banks index, a group of 42 big European banks, climbed 21% between the start of the year and late February — when it hit a five-year high — outperforming its broader benchmark index, the Euro Stoxx 600 (SXXL). The KBW Bank Index, which tracks 24 leading US banks, has risen by a more modest 4% so far this year, slightly outpacing the broader S&P 500 (DVS).
Both bank-specific indexes have surged since lows hit last fall.
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