Since the U.S. election, bank stocks, both domestic and foreign, have outperformed all other sectors.
Since November 8, Deutsche Bank is up 33 per cent, followed closely by Goldman Sachs at 32 per cent and Morgan Stanley at 25 per cent.
Canadian banks have also done exceptionally well, especially those with exposure in the U.S. where CIBC is up 11 per cent, followed by TD and Royal Bank, both ahead by 10 per cent.
According to GlobeInvestor, all bank stocks have been on fire in 2016, particularly in the second half of the year, as the threat from loans to struggling energy companies subsided, and investors began to anticipate higher U.S. interest rates.
On average, Canadian bank stocks have risen nearly 26 per cent for the year and 40 per cent from their lows in February, and as 2017 unfolds, forecasts are for higher share prices ahead.