Hedge Funds Are Dumping Bank Stocks and Piling Into One Sector, Says Goldman Sachs: Report

Goldman Sachs reports that hedge funds are reducing their investments in bank stocks for the second consecutive week. This involves selling long positions in US banks and global financial services while increasing short positions in European financial stocks. Simultaneously, these funds are significantly increasing their investments in consumer staples like food, beverages, and tobacco. This sector is the most net-bought sector this month, according to Goldman Sachs' prime brokerage desk. These shifts are occurring as major banks are set to release their second-quarter earnings reports this week.