Banks are sitting on “unprecedented profitability” as the sector defies a housing downturn and enters the year making money from vast amounts of cash sitting in low yielding accounts. Broker forecasts for the year ahead suggest that banks will manage a 20 per cent lift in revenues as the rate rise cycle continues to kick directly into bank profits. Martin Currie says bank stocks have come full circle to enjoy a material tailwind. Matthew Davison, portfolio manager at Martin Currie Australia, says: “We are now seeing an almost unprecedented top line profit growth from the banks.
This explains it better… so why do professional fund managers do such “silly” things with OUR money such as shorting banks ?
CDO Price at posting:
$2.33 Sentiment: Hold Disclosure: Held
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