Spot on. A day like this was always going to happen. There is just no growth in the sector. NAB and Westpac both reported declines in earnings, Bendigo Bank got smashed -18% the day before. Even the market darling CBA only grew its cash profit 2% despite CBA share price being up 40% in the past year.
The prices multiples are at unprecedented levels and there is no fundamental reason for why the bank share prices should be so high.
I could also caution againt this being a 'dip'. Take a 5 year time horizon - bank shares are still at extreme levels from an valuation point of view
NAB Price at posting:
$36.40 Sentiment: Sell Disclosure: Not Held
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