Economic Indicator: The Financials are a Red Flag for Investors

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?

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