Above is an interesting video interview with Nathan Bell, Research Director at Intelligent Investor, discussing the latest earnings from the CBA, and why he believes that Australian investors should avoid buying Australian bank shares at this time.
His key reasons are as follows:
- The banks’ share prices are high and they are over-leveraged to housing, which is itself over valued;
- The economy is highly exposed to a slowdown in China and the mining sector;
- Investors are taking on too much risk simply because interest rates are so low; and
- There are better and safer opportunities
