The compelling case for the US financials sector

Recent stock moves in the US could lead one to believe economic conditions have deteriorated substantially and the American economy is set for a severe setback.

The market has taken events in China, possible rate hikes, slumping commodity prices and a strong dollar, not to mention the ongoing Greece saga, as a reason to view their glass as half empty. Where now for rates after Fed hold? However, there are as many reasons for optimism and the recent pullback has offered an attractive entry point for the calmer, more considered investor. With unemployment near 5% the US is not far off full-employment levels, a situation that surely warrants some kind of monetary response from a near zero interest rate policy.  While the US recovery may no...