Thats why CBA has done so well. Because there is nothing else to invest in outside banks and miners. And as the US markets rise based on the magnificent 7, aided by a potential AI boom, our markets move in tandem despite our companies not having the same earnings power and growth - hence why valuations are now at extreme levels. There is a debate around productivity and innovation in Australia regarding how below average it is among the developed world. For me, confirmation of this is our manic enthusiasm for CBA. Other developed countries do not have the same level of nosebleed mania for their major bank. But we put CBA in a pedestal, 'best bank in the world' even though it's not got the highest ROE or growth in earnings. The CEO flouts the idea of sacking call centre staff and replacing them with a chat bot, and we think its this wonderful amazing thing. Its cultural cringe.
Our investment community pretend its Apple in the early 2010's or Microsoft in the 1990's. When in reality, its just a bank that pays out 80% of earnings, of which current investors get 2.95% - which is barely ahead of inflation.
CBA Price at posting:
$154.65 Sentiment: Sell Disclosure: Not Held
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