The Globe and Mail reports in its Friday, Aug. 7, edition that the Canadian financial sector's share of the TSX is at an eight-year high, reflecting investor enthusiasm for bank shares amid nervousness about energy and materials. A Reuters dispatch to The Globe reports that the financial sector now represents 37 per cent of the TSX, diminishing diversification benefits and exposing investors to potential declines in financial shares. The TSX has outperformed the S&P 500 in 2025 and so far this year in part because it offered an alternative to highly tech-concentrated United States indexes. Canada's Big Six lenders are among Canada's biggest financial companies and control a large chunk of the market. After several banks posted consecutive quarters of double-digit earnings growth, they are trading at near multi-decade high valuation levels, prompting some investors to question whether future earnings growth can keep pace with lofty expectations. Dehal Investment Partners portfolio manager Michael Dehal says: "That is an area of concern for me and it's been for quite some time. If the earnings cannot live up to the multiple, you are going to see the price decline and that's going to weigh on the TSX."