Is this the last glory days for many years for WBC and the other banks. No talk of Fintech to the moon in reply . IF they become anything the banks have close to 200 years of history of "dealing with competitor" or buying them out. I will not go into, look at the banks selling out of them now to argue the fate of Fintech
I am not going to explain the whole interest rate and inflation theory other than if we head in the path followed by Japan its not good for the banks so before you vote it down not knowing what the argument is that you are voting on
It also follows that the rest of the share market is not much better of if your at maximum P.E
Given if you listen to the experts and then cross check what did happen they come of close to 100% wrong so incompetent or selling you a story that they are taking the opposite side of the trade on.
The opinions of the experts is higher inflation or around the 2% and higher interest rates
Modern Monetary Theory is basically what Japan has practiced for the last 30 years before it was named MMT
For all the Government is going Brrrr with the printing press people. Lets take Au . The government has BORROWED the money so owe a debt that has to be payed back with interest so nothing printed. When a government PRINTS goes Brrrr the money and has no debt other than the cost of ink and paper then you get Zimbabwe , post WW1 Germany and about a dozen other examples form the last 100 years.
My stance is its a japan trail we are following . I am keeping my shares despite the outcome that may happen but non will have a PE that gets close to Tesla 1000 times PE or anywhere near that.
Every year companies become overpriced compared to its pear so lets say WBC so into ANZ. AGL into ORG and so on This may balance the slow decline in value of the shares and not result in a capital loss and no need to worry about capital gains to pay for a very long time
If you dont own a house or any financial assets look at what has happened to Japan and take heart in that you will be able to afford one and watch the assets of others fade away
WBC Price at posting:
$26.27 Sentiment: None Disclosure: Not Held
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