BHP announced its lowest dividend in 8 years. This could be support for the banks. Its long been a theory money is piling onto the banks because there earnings are considered more reliable than the mining companies who are now operating in a time where the Chinese economy is slowing/maturing and thus not growing as quick as it has in the past
Mind you buying CBA for a 2.8% dividend yield just to avoid buying mining stocks sounds like a race to the bottom.
Financials and mining the two biggest sectors in the ASX 200. Financials are not growing earnings; mining companies are reporting lower earnings - the market should not be roaring as it is. Investor behavior in present times is just so weird. Irrational even.
Its so obvious we are blindly tracking the US bull market. The difference being the concentration in the US tech stocks that drive the US market grow earnings & are the big players in what could be an AI boom. The concentration in our market is in companies that are not growing earnings and are not in a sector that ill benefit from the next technological revolution.
CBA Price at posting:
$164.84 Sentiment: Sell Disclosure: Not Held
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