The most bizarre thing about the price, is when I read commentary that CBA is considered a safe haven for people who want to park their money in times of uncertainty. I often read due to the uncertain outlook of the miners and the Chinese economy that investors will rotate into bank stocks. Which is bizarre because never in world history has a bank stock been considered a safe haven. Cash is a safe haven, short-term government bonds are a safe haven. What's even more mental is the 1 and 2 year AUS government bond yields are higher than CBA's dividend yield.
Im really curious if this can turbo charge up to 30 times earnings and the dividend yield dip below 3%. Stock markets have been trending upward for so long making impressive gains, it seems as if no one believes the market can reverse, so it doesn't matter if you buy at a nosebleed valuation. AKA a bubble
CBA Price at posting:
$144.35 Sentiment: Sell Disclosure: Not Held
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