Description: Financial stocks were the highest performing sector in the S&P 500 in May, as the month comes to a close. The Financial Select Sector SPDR Fund XLF -0.20% , which tracks financial stocks in the S&P 500, was up 7.5% for the month, compared to half that in the broader market in the same period. In contrast, the U.S. Treasury bond yield curve has have steepened, which analysts say is a good sign for bank profits.
Date: May 31, 2013
Questions for Discussions:
- What does the report argue is the relationship between financial stocks and the yield curve?
- Does this make sense to you as well?
- What can cause the predicted scenario to fall apart?