How much longer than we value our banks at these levels of valuation just to track the American markets. When Microsoft, Nvidia, Apple, Google, Amazon ect to double digit EPS growth with high ROE's, and our 'aussie banks' do their 13% ROE's and 1% profit growth. When does the reality set it that its dumb to bid up an asset price that isn't going to benefit from American tax cuts, American deregulation, and is an observant only-participant in the AI boom.
Are the Superfunds in an unholy alliance do keep assigning member contributions to bank stocks? Do they not have any other ideas. Because it makes me feel our domestic market is being zombified by braindead investing. If there was ever a case for scrapping mandated super contributions, this is it. Because all this money is being concentrated into our banking sector which has killed a sector reliable for income investors (CBA is no longer a dividend stock) (its a non-growth stock priced as a growth stock). New member contributions are also being assigned a yield less than the rate of inflation, however is the plan to just use new contributions to bid up the price and give former contributions a capital gain - is it a ponzi? We will see. But if CBA ever goes to 30 times earnings, the system is shot
CBA Price at posting:
$157.85 Sentiment: Sell Disclosure: Not Held
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