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Brokers and Fund Mnagers have been saying the switch from resources to financials is on because the financials are trading on PE's of 8-9 times with fully franked yields of 10%. Dow jones newswires keeps saying to expect the switch to financials with BHP targetting $33.00 so I reckon they are inducing some fear into the market to fulfill their prediction. The problem with these idiot brokers is that half of them aren't old enough to remember the early 90's when the recession really hit banks. That's why the only banking analyst that is negative on banks is from JP Morgan because he was an analyst back then. Most of the other banking analyst see the financials as oversold because they are seen more as commercial banks rather than investment banks. However what they don't get is that the risk to our banks is coming from our weakening economy and higher funding costs. Look at ANZ with the $3b it has to write off.

Now this is the bit I don't get. A lot of analysts reckon we won't go into recession because our economy is strong so therefore the banks are a good buy.However, they admit that we won't go into recession because our resource boom will beep the economy growing. So explain how that justifies a switch from resources to financials??? Sorry for the rant.