In a healthy economy the financial sector typically performs very well. The banks, investment funds and insurance companies are the heartbeat of the economy and as such they act as a decent barometer of the health of the economy as a whole.
The charts of these institutions confirm the economic weakness we have seen since the start of the year:
The fact that money is leaving the financials is a red flag for investors. The question is: Are the financials the canary in the coal mine as they were in 2007?