CBA TA update, page-1752

For long term holders, I get why they are sitting on the sidelines and not cashing out. What I find incredible are the new entrants into CBA. People who bought at $150. The reason why, is you are buying at a valuation that is absolutely extreme by historical standards. This has been the case ever since is crossed $130, infact $120 was expensive. The current dividend yield is nearing a flat 3%. The higher the SP goes the returns dimmish with every % gain. A correction from the current 26 times earnings to 20 times is 24% - it would take 8 years of 3% annual dividend payments to bridge that gap. It just seems the risk reward at $150 is so geared toward the bad side.

If the wider market corrects, CBA could be punished more severely than the rest of the market given its lofty valuation. If Index funds sell off CBA will get hit the hardest as the rise in its share price, and weakness in the miners has given CBA a massive weighting in the ASX 200.

Im also reading articles in the AFR that read like love letters to Matt Comyn. Is this guy Steve Jobs or something? The ROE was better when Ian Narev was boss. People going on about 'AI' and this new digital advertising trick they have rolled out. At the end of the day, the banks are just mortgage houses. They are not tech companies, although I get the feeling many are viewing CBA as being something more than a bank. Which is very dangerous, because I remember Domino's Pizza being branded as a tech stock - that narrative didn't end well for shareholders who bought into the idea.