‘Time to shine’ for active managers as brokers turn bearish on banks

For the past few years, fund managers have been punished for owning fewer bank shares than their passive rivals who simply buy the index. But those bearish bets may be about to pay off, as strategists warn of a major unwind for the sector from a looming economic downturn.

Morgan Stanley told clients on Tuesday that the “game had changed” for the industry from rising interest rates, a global energy shock and changes to fiscal policy which had yet to be priced in by the market.

Source: https://www.afr.com/markets/equity-markets/time-to-shine-for-active-managers-as-brokers-turn-bearish-on-banks-20260526-p600nt