They all flowed straight into banking shares as more people...

They all flowed straight into banking shares as more people learned about the stupid franking credit policy.

A financial adviser I know said they got a crapload of enquiries about franking credits and how to get on the gravy train as the debate about it raged in the media. The terrible thing is, the FA said it's quite common for to meet a potential client for the first time to find they have like 50% of their portfolio in the big four banks, trying to maximise the dividends and imputation, while thinking that they get more diversification by just adding more aussie banks or more aussie resources companies. This is obviously not the best strategy for a 65+ year old retiree from a risk management perspective.

But hey, that's what you get - put the incentives there like franking credit refunds and people will pile into it. Good luck trying to get out along with the horde when it all goes pear shaped though. I just hope when these retirees have their SMSF's blow up in the face, that they don't blaming the government for not protecting themselves from their own greed going cap in hand for a bail out.

Crap policies like this distort the market in a terrible way.