CNBC recently reported a segment from RBC Capital Markets' top banking analyst and his views on financial stocks. Read CNBC's article here: https://www.cnbc.com/2022/06/26/apathetic-investors-to-embrace-banks-rbc-top-analyst-sees-comeback.html. The gist of the article is that the analyst sees financial stocks rallying in the second half of 2022, because the worst have been priced in, yet the recent stress test on the banks show they are doing really well.

This analyst's assessment is no surprise to us, as it has been our view on financial stocks since the start of the year, as well as into the ~20% sell-off that our Morgan Stanley (MS) and Wells Fargo (WFC) have seen. We have been overweight on the financials to position for the recovery in these stocks. Currently, the weighting of the financial sector in the S&P 500 is about 12%, while that number for our portfolio is about 15%. We think there are good reasons here for investors to be overweight on this sector.