Global growth remains weak while US recovery is beginning to give the US Fed comfort in moving on their tightening rate cycle. China, Europe and Japan are expected to deliver more stimulus while US beginning to see early signs of inflation. Even with the recovering US yields, Aussie financials are more than three times the yield when franking tax benefits are added for local investors. Recovering inflation in the US will flow through the currency to the rest of the world and force investors towards higher returns. The long term outlook for financial sector remains positive as the market chases premium yield in low global growth and recovering US economy. Global investors will come back to Australian financial sector premium dividend yield as the currency starts to see support in the mid to high 60’s. (VIEW LINK)