Bloated Canadian finance shares looking queasy

Despite all the usual consensus happy talk, selling pressure has been dominating Canadian bank shares since last June, when the price of oil began to tank in earnest. Here is a one year portrait of the finance sector ETF (XFN).
XFN Feb 24 2015With oil breaking below $50 in January, Canadian economic indicators (that typically lag the price of WTI by 3 months, see Citi chart below) are likely to disappoint over at least the next couple of quarters.  (Hint:  Not yet priced into lofty Canadian stock prices, least of all the banks.)
Cdn economic surprise index

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