Institutions are switching from banks to resource stocks I...

Institutions are switching from banks to resource stocks I think. The money pushing up resource stocks has to come from somewhere. I think the very strong rallies bank stocks have experienced this year is going to come to an end as resources rally. Big 4 banks were seen as defensive stocks due to their dividend yield. Resource stocks are tied to China which is recovering. The Big 4 banks are looking at lower earnings as credit growth in Australia remains subdued. You can probably throw fundamentals like what is over/under valued on a P/e, divvie yield basis out of the window.