Originally posted by riskyrider
Barclays failed due to a rouge trader. Australian banks cannot fail in this way. As you point out though treasury makes half the profit for the bank and a rise in bond yeilds and a fall in the aussie makes for tresaury profits. That with a little more gouging a one off write down for the RC and a little cost cutting and in 2 years we will be looking at record profits again.
Apart from reinvest I haven't bought CBA since 2009 and I paid $26.00. Against my brokers advise mind you. Not to mention MQG at $20.
I'm not dumping cause the tax on profits would be greater than the loss of principle.
So roll on $60. is what I say. Buy and hold it from there and a few other financials and retire happy. If you can buy an Aussie bank with a grossed up 10% yield buy it. I will be big time. They are so heavily regulated they may as well be a bond.
If google bank or apple bank opened in martin place maybe I'd be worried about fintech but not yet and even then Amazon isn't working in Oz cause the cookie cutting doesn't cut it here. Maybe fintech won't either sure the kids will love it but the kids don't hold the wealth for at least 20 years.
Good luck.
Originally posted by riskyrider
Barclays failed due to a rouge trader. Australian banks cannot fail in this way. As you point out though treasury makes half the profit for the bank and a rise in bond yeilds and a fall in the aussie makes for tresaury profits. That with a little more gouging a one off write down for the RC and a little cost cutting and in 2 years we will be looking at record profits again.
Apart from reinvest I haven't bought CBA since 2009 and I paid $26.00. Against my brokers advise mind you. Not to mention MQG at $20.
I'm not dumping cause the tax on profits would be greater than the loss of principle.
So roll on $60. is what I say. Buy and hold it from there and a few other financials and retire happy. If you can buy an Aussie bank with a grossed up 10% yield buy it. I will be big time. They are so heavily regulated they may as well be a bond.
If google bank or apple bank opened in martin place maybe I'd be worried about fintech but not yet and even then Amazon isn't working in Oz cause the cookie cutting doesn't cut it here. Maybe fintech won't either sure the kids will love it but the kids don't hold the wealth for at least 20 years.
Good luck.
why do you think the yield will be 10%
They going to cut the div. because the game is up.
when you cant hide misdeeds anymore then no need to appease shlders. The sp will sink and then they say they need all the money to reorganise and built a safer bank and that money my friend comes from what should have been a better div.
They will go the way of the US - have a look at the div yld on banks there
(20min delay)