Good News & Bad News, page-42708

Citi recommended yesterday in that people move out of banks into mining dfs1 - according to the Australian …

But I’m not in any banks!

cheers


Switch from banks to miners in coming months, Citi says


It might again be a case of “sell in May”, but don’t forget to buy the subsequent dip in miners. Picture: Carla Gottgens/Bloomberg

• By DAVID ROGERS
  MARKETS EDITOR
• 4:33PM MAY 9, 2024

A surprisingly-sharp fall in the major banks and the broader share market has raised questions over the sustainability of unusually high share price valuations in the banking sector in particular.
Perhaps this is the start of a classic “sell in May” move in the local share market although the annual Macquarie Australia Conference hasn’t generated much in the way of profit warnings.
US investment bank Citi is betting that valuation considerations will lead investors to switch from banks to miners in any such pullback.
Bank stocks have soared this year on expectations of interest rate cuts in the US and Australia but those hopes have been pushed out by concern about sticky inflation.
Despite flat leads from Wall Street the S&P/ASX 200 index unexpectedly dived 1.1 per cent to 7721.6 points on Thursday, erasing all of its rally that followed a less-hawkish-than-feared outcome from the Reserve Bank meeting this week. Trading volumes were light but falls broadened to include most sectors.
Banks did much of the damage with CBA shares down 2.2 per cent despite expectations of modest upgrades to consensus forecasts after its quarterly trading update.

Investors will be wondering if the market is finally tiring of stretched share price valuations on Aussie banks…….

…etc