I wondering whether its the begining of a major change in sentiment in the Australian investment of stocks from defensive to growth stocks.
Banks will always have their place, they pay good div and will be steady no matter what.
But whats happens when rates% start to bite and borrowers start to hurt, this will no doubt affect banking stocks.
In times of change we do see a inflow into growth stocks and this could be a place where placing your money might be a better option and return over the next 18 months than saying placing it all into the banking sector.
Having a look a longer term charts on LLC,TLS,NCP and (BHP maybe) their could be a strong argument for this (time will tell). Sept/Oct will no doubt put selling pressure on most stocks.
Banks stocks made their normal higher peak in July , whether they get to those highs again in the next few months is anyones guess, but trading at 15pe compared to O/S 8pe on banks is something to think about.
