The Globe and Mail reports in its Saturday edition that perhaps we should get used to expensive bank stocks. The Globe's David Berman writes that bank stocks have more than doubled since October, 2023, on average. That is unusual for lumbering, regulated behemoths. While the sector tends to outperform the S&P/TSX Composite Index over the long term by a slim margin, it has beaten the index by an overwhelming 30 percentage points over the past 2-1/2 years. Normally, big gains are not worth complaining about, but the rally has pushed valuations to levels that are now well above long-term averages. These elevated valuations raise questions about whether the sector could hit an air pocket if the sputtering Canadian economy gets worse or a protracted Middle East conflict drives up global inflation. Over the past week, bank stocks have not been immune to the broader market turmoil. Royal Bank of Canada, the largest lender, fell during five of the past six trading days, as of Thursday. The share price is down nearly 6 per cent from its high in late February, when the banking sector reported its quarterly financial results. It may be the war, but perhaps rattled investors are also taking a closer look at valuations.