Alright, I've finally shorted this stock.
Usually I short more riskier stocks, but this is a very safe short.
It's trading at an insane PE.
CBA market cap wise is almost bigger than the next 3 banks combined.
CBA makes up like 23% of ASX 200... that's crazy.
It's almost $100b more than it's next counterpart, BHP.
Yes there is opportunity for more new imports to buy overvalued homes to become further debt slaves, but at some stage, $1m average house prices are just too much for new imports... The wives are all now working as children are locked into the childcares from 6months old, if they are having children at all... but in a couple situation, there is only 2 people that can provide income, and that's tapped out... so at some stage, when houses/rents are 60% of income, it's just too much, and people can't do it. Trends are less people having kids, and more single people in general.
Australia's main business is selling dirt, and speculation on houses... will the world need more dirt to feed the fully automated, dark AI factories in China? Probably... but really, there is only so much stuff that people can buy.
Will house prices continue to "go up?", maybe, I mean, just look at M0, M1, & M2... insane amounts of money has been printed so that house is still the same house but we need more sheckles to buy that same house... just look at most classes - food, bitcoin, gold... it's all the same, AUD losing value rapidly...
As people have mentioned, on a global level, most people know HSBC, or Goldman... but CBA? How can they be in the same league.. Just look at total assets vs. market cap and it paints the picture that CBA is due for a correction.
In terms of fear/greed index, this is sitting at extreme greed... so I'm shorting.
Good luck.
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