Buy Hold Sell: Is it time to ditch the banks? 7 ASX financials stocks to watch

Buy Hold Sell, by Livewire Markets · May 12, 2026 · 15m

While much of the market has been nursing its wounds in 2026, the financial sector has been quietly holding up. But nothing stays comfortable forever.

With a fresh rate hike hitting the market and bank valuations looking increasingly stretched, one of our guests this week puts it best - the banks are running on Wile E. Coyote physics. Off the cliff, still running - just haven't looked down yet.

So where does the smart money go from here? Because if the bank trade is getting crowded, the case for rotating into other parts of the sector, insurance in particular, is building fast. Higher rates…