it's not that simple, look at property prices in that last decade, they have skyrocketd and that increases the loan book assets massively. Allowing them to derisk greatly and if played right, leverage this to loan more and grow the loan book which is crucual. Also take into account all the printed money and inflation during covid, where does that money end up? In property and assets. The fact CBA is currently the leader in mortgages and still growing their loan book at a more than steady pace reflects why they are ahead of the pack. Management knows exactly what they are doing, exiting the US market completely in 2002 allowed them to reduce global exposure to the GFC.
They have 80% of their client base ahead in payments. The major risk for CBA is a property price collapse like what happened during the GFC, but even then the AUS property market weathered the storm way better than global markets, this cannot be ignored, and CBA's business model benefits via this local boon. The other major time the stock price was derailed was due to the banking royal commission then covid.
Not saying you can't go ahead and short a pullback, you do you with your hard-earned. I agree a healthy market needs price discovery more than anything else. But, people wonder why it's called the widowmaker, and even the analysts never ever seem to get that picture.
CBA Price at posting:
$164.72 Sentiment: Hold Disclosure: Held
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