international charts for friday night, page-4

re: international charts for friday night - austra Agreed Irish,

a beautiful piece of market commentary in the weekend papaers extolling the virtue of buying bank stocks for the 6% dividend and that they are oversold due to the selling efforts of Mums and Dads.

Hello?

Have you ever tried talking your parents into seeling the bank stocks out of their self managed funds? They would rather cut their arms off because in their view these stocks represent their only surefire dividend income and if they bought them years ago (as they usually have) they are scared witless of the CGT.

And anyway, they will say, where else are we going to put the money.

The banks are being sold down by the fundies (these are the people that significantly shift the prices of stocks like banks) because they know the goodtimes are over. CBA would still be yielding six percent if the shares were trading for $1. They are a straight yield play and the market thinks that yields have topped out in banks (for very good reasons I suspect).

This dividend yield expressed in percentages is in my view the last almost criminal example of how investment advisors are convincing mug superannuation punters to invest in bank stocks.

If they expressed the same advice in cents per share then about this time next year their clients would be cutting their collective balls off. (Presuming they have any left this time next year...)

Cheers,