“It’s important to bear in mind that the big bank stocks have the habit of declining when they report earnings, and this is another reason why I’ll be watching them so closely this week,” according to Maley. “If the group can regain their footing and rally back toward their year-to-date highs, this will prove to be quite a bullish development and I may become more optimistic.”
Year-to-date, investors have added $369.11 million to XLF.
Furthermore, the Trump administration has taken steps to lift some of the more onerous regulatory burdens placed on the bank sector after the financial downturn, and the regulatory reforms have yet to translate into higher returns.
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