CBA TA update, page-2535

''Third because they (Superfunds mainly) have a mountain of cash coming in day in day out from members. These Superfunds desperately need retail to sell. Buying something else outside and risk underperforming when your mandate is to beat the ASX200 index using only ASX companies is a sure way to lose your gravy train cushy job.Expect funds to chase Financials, IT and Consumer Desc until other sectors get on firm footing"

Probably at least 4c.

Thank you for your reply.
If we look at CBA's high price as substantially being a function of the attitude in the quote above , then it would not be unreasonable to see that as an artificial price which eventually must return to reality.
So perfectly reasonable to buy CBA in expectation that it will rise for non-fundamental reasons , for a while.
Buying it for the long term would seem unwise .
On the Coke Pepsi chart , I have accepted that CBA has some rights to a premium , but , to me , the CBA vs the rest lines on the graph , are unjustifiably far apart.
Recently bought a lot of ANZ instead of CBA
In 2 years , if the share prices are the same , I will be miles ahead because of the yield differences.
Risk/reward would seem to favour that approach.

cheers