Great Graphic: Relative Performance of Bank Stocks–US, Europe, and Japan

This Great Graphic was composed on Bloomberg, and it shows the performance of bank share indices of the major bourses.  The time series are indexed to 100 at the start of this year.  

The green line, which is off about 6.6% this year is the MSCI US bank index.   The yellow line is the MSCI European bank index. It is off 25% this year.   The white line is the Topix bank shares.  It is fallen 30% this year, even with today’s sharp gains.  

Our constructive outlook for the US dollar is predicated on divergence, and we often discuss the divergence of monetary policy.  However, the divergence in the health of the financial sector, and the negative interest rates, is another dimension of our meme which is also important.  


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