a savage over reaction to lower % rates ..by the shorts
also to only 1 Q CBA results...that just saw thru a IO mining crisis that is now showing signs of improving ..if the recovery in miners fortunes is Sustainable ..their communities will return and prosper ... so will CBA home lending benefit.
in the mean time ..super-funds + retirees know the CBA pays 5% income as apposed to 2% in term bonds .
how many retirees and superfunds will switch into 2%bonds instead of keeping the shares with franked Divies ? not many..ide say most superfunds will probably add to CBA for the income .
housing demand and prices staying buoyant are dependent on stable Low % rates holding lower for longer.
% rates in OZ will never go up before the USA lift its rates first so Australia will lag behind the USA in lifting rates to avoid a lift in our AUD to parity again... is that 2016 or 17 ?
Banks will be due to pay Dividends soon .. that will attract Yield chasers sending Bank sp up again.
CBA Price at posting:
$82.98 Sentiment: Buy Disclosure: Held
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