Can people stop calling CBA a 'save haven'. It is not a safe haven. In the GFC and covid the CBA share price lost over half its value. A government bond is a safe haven as during the GFC and covid bond prices went up. Even CBA's hybrid securities are not a safe haven as they can be converted into equity in a stress event. CBA's hybrids are less risky than common equity as hybrids will return the face value at maturity baring major stress event. These hybrids even pay a higher return than CBA common stock given the current yield is 2.6%.
If you are holding CBA because you think it is recession or correction/crash proof - you are utterly delusional. Stop pretending the current share price rally has anything to do with safety, it's a momentum trade and highly speculative with huge volatility. Another thing with 'safety assets', is they unwind when the market de-risks. Yet CBA is leading the Australian market rally. A 'safe haven' asset that leads a broad stock market rally............what an oxymoron.
The shit people come out with to justify this bubble never ceases to amaze me
CBA Price at posting:
$182.80 Sentiment: Sell Disclosure: Not Held
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