CBA back to 70 again ?, page-18

$90 you're dreaming mate. Banks have that many headwinds in front of them its crazy, not to mention CBA would be the last bank id be buying at the moment (You only have to look at the other banks outperformance during this rally). I see value with the other banks as they are trading around book value so should still see some upside however for CBA they are almost double their book value. The reason that $90 shouldn't be reached is the lack of growth that the banks are going to see over the medium term with zero interest rates forever how long? The margins have been shrunk and growth of the book will be unlikely given house prices should remain stagnant if not fall due to Covid impacting house holds income. I hold WBC and ANZ with an average price around the $15 mark and am not expecting them to go much higher either due to the unforeseen risk moving forward as well as the lack of growth the sector should see. IMO do not get caught up in this bear market rally i do believe banks are sitting around fair value now however talk of them reaching all time highs again is ridiculous if you have a basic understanding of how a bank works. While i wouldnt be against the banks continuing to rally (due to personal holdings and large index holdings) i caution those investors who are chucking money in chasing this climb and using a rising share price as a reason to buy the stock. It was only a few weeks ago that it appeared the world was ending for banks (not that i agreed entirely) but i caution fundamentals have not changed and once this free money tap from the government gets turned off only then will we truely know the extent of the damage our economy has faced. So please DYOR and look into those headwinds the banks face (low interest rates, more cap raising or reduced divs to meet more regulation of cet 1 ratios, the media hating the banks and not wanting them to profit etc) $70 is fair value IMO and i wouldnt be chucking more in just yet.

IMO DYOR GLTAH