It appears to me that the rise in the CBA share price over the last few weeks could be mainly caused by money coming from the U.S.A. because of uncertainty in their markets as a result of tariffs being initiated on imports.
When the U.S.A. markets settle down & America becomes a better place to invest than Australia, particularly if Australian interest rates fall, triggering a fall in the Aussie $, U.S. investors will want their money back in U.S. $s. There could be one almighty sell of CBA shares which should see the price plunge. This should trigger a stampede & a sell-off back to reality, to somewhere around $120. That is where I will consider buying.
Other investors who are worried about capital gains tax could look at their portfolio & sell shares that are showing a loss, with a view of buying them back later, and selling the equivalent number of CBA shares that matches the CBA profit to the loss on the other shares thus eliminating any capital gains tax. This ideally should be done before June 30.
CBA Price at posting:
$180.19 Sentiment: Sell Disclosure: Not Held
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