Will cheap financials get even cheaper?

ON FINANCIALS

clock

Barely 12 months ago the notion of actively investing in financials was perceived as only for the adventurous. Even so, selling off a stock like HSBC was probably considered a step too far.

Since then, global financials - which are the world's largest investment sector - have moved on, with the sector materially out-performing world markets over the past 12 months. Now many investors are wondering if they are willing to take more pain by sitting on the sidelines. It seems an opportune moment to avoid the scramble and buy whilst global financials remain fundamentally cheap. The key issue driving the sector has less to do with the froth provided by low interest rates, although that has helped, but more to do with the real improvement in capital positions on the back of recove...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 25 March 2024 • 5 min read
'Fundamental shift': Why transparent investing really matters

'Fundamental shift': Why transparent investing really matters

‘There needs to be a concerted shift towards greater openness’

Simon Camilleri
clock 18 March 2024 • 4 min read
Partner Insight: Passive and active — the case for both

Partner Insight: Passive and active — the case for both

Invesco
clock 18 March 2024 • 4 min read