Bank stocks have outperformed the Nasdaq over the last month, so what is going on here? Real interest rates are negative at around -1%. When you consider the financial sector has better dividend yields, an actual positive real yield, along with lover leverage than 12 years ago, and massive loan loss provisions they may not need, you can see why some investors would rather see their money in those names than sitting in a 10 year treasury.
Plus, the Fed has been clear, they need to see 2% inflation for months, not a few weeks to change course. We can't even get to 2%, wake me when it happens.