The US markets rallied so our markets rally to. Difference is their major companies actually grow their EPS and can compounds returns. We are the only market that tracks the US market with manic enthusiasm. Earnings are 22% cheaper in the UK and 30% cheaper in Japan. The USA can be at 27 times earnings, because you just know the magnificent 7 will continue to do double digit EPS growth over a long time.
While our banks EPS growth goes nowhere. Which is why the price multiple for CBA is about 30% above its historical average - we are jump pumping it pumping it pumping it to track the gains made in the USA. I reckon on a 3 year forward earnings basis, our market is the most expensive in the world.
Every time I see the share price, I remined of an 'Aussie bloke', someone like Paul Murray from Sky News, talking up CBA as 'the best bank in the world' and calling Matt Comyn a 'Champion' who is doing things the 'Yanks cant do'.
Im so glad I'm not invested in this joke market and my assets in international index funds are unhedged, and my direct holdings and US denominated.
CBA Price at posting:
$154.34 Sentiment: Sell Disclosure: Not Held
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