Everyone is wrong before they are right. This game never ends. And I swear to god if this pops $150 im buying another put.
I still believe the extreme valuation, rapid rise of the SP, pooled with the red flags in the US economy, means at any given time the SP could tip & tip fast.
One of the bull theories I've heard is the price is being driven by foreign investors. Well now with monetary easing in the USA, a weaker USD and more liquidity in the US, it makes American top tier stocks a more attractive investment. Do the foreigners take the gains, buy the cheaper USD and move into similar valued companies with better earnings potential? Thats a positive scenario, as the other theory for the 50 basis rate cut is the Fed is worried about a hard landing, which would be worse for the CBA SP.
I also believe the longer the SP treads water between $140-145, you would be more inclined to see a sell off. If CBA shareholders believe the rally is over they could all rush for the exits to lock in the gains - no new buyer and recent buyer wants the 3.2% dividend yield - they want to ride the wave to $150
We shall see.
CBA Price at posting:
$144.02 Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)