Good article in the AFR referencing 'TINA' - there is no alternative.
Supposedly that's the primary reason Superfunds have been buying up the 'aussie banks'. The influx of FOMO money and imitation of the US share markets which have been powered by the magnificent 7 has allowed for big inflows. All this money has to be assigned somewhere in the market. With the longer-term earnings for the miners unpredictable and murky, there is no alternative but to buy the 'aussie banks' no matter how expensive they get, simply because the earnings are considered reliable and predictable where the miners are not.
If one sector is struggling, money should not mindlessly flow into another sector, the market overall should go down to reflect the markets diminished aggregate earnings quality. This is how things normally work. But as of right now, things are not normal. We are in an era where there is such a strong bias that markets will only ever go up, so people think they have to be invested no matter what valuation they get.
All this talk about CBA being an industry pioneer and Matt Comyn being the greatest banker since John Pierpont Morgan - it was all facade. The current share price is a market gimmick
CBA Price at posting:
$153.90 Sentiment: Sell Disclosure: Not Held
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