Can you say D-O-G? That’s how the Financials act with Bernanke leaning on the long-end of the curve.
The XLF was down in a market up week last week, and were down again yesterday as consensus is forced to chase slow-growth (Consumer Staples +1.2% yesterday). The Yield Spread (10year – 2year) compresses again this morning to 219 basis points wide. It's a bearish U.S. Growth signal versus bullish Europe.
For more information on how to subscribe to Hedgeye research click here.