What should we do with European banks in portfolios after the ECB decision and Draghi’s departure?
26 Jul 2022
At first glance, the stakes are not huge. The weight of Banks in the Eurostoxx has shrunk in the past few years, to just 7.6%, i.e. significantly less than Capital Goods (12.5%) or Tech (12.3%), whereas Banks were still the largest sector in terms of market capitalisation five years ago. In fact, in market capitalisation terms, the sector has never got over the major financial crisis of 2007-09 or from the repeated crises since...