Despite having each sacrificed around 1% of value earlier in the day, the big four banks rallied yesterday afternoon to turn what was a 40-point deficit for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) into a 19-point gain.
Westpac (ASX: WBC) continued where it left off, adding 1.83% after already having gained 4.86% last week. Its recent resurgence comes after weeks of volatility in the industry, whereby investors chose to escape with profits after suggestions that what has been dubbed as 'the great bank bubble of 2013' could be deflating. The old case of 'sell in May and go away' also came into effect, which saw each of the banks plummet up to 22%.
However, investors now find themselves re-entering the banking scene in light of the discounts and high-yields, as it looks likely that the RBA will either hold or perhaps decrease the official cash rate next month.
ANZ (ASX: ANZ), Commonwealth Bank (ASX: CBA) and National Australia Bank (ASX: NAB) all finished yesterday with gains of 2.26%, 2.04% and 1.84%, respectively. Although the banks seem to be making a recovery, and could offer investors short-term gains, they are still currently very expensive investments.
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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.
