By Chris Becker
With the National Australian Bank (NAB) division of Megabank reporting flat 3Q trading results this morning, via Pragmatic Capitalism comes this interesting chart from Bank of America:
Given the fact that the Euro crisis is never ending (thanks to a lack of political compromise) it’s unlikely that the timing on this one will be anything remotely similar, but this statistic just jumped out at me as a sign of incredible skew in a large market. It’s food for thought and as always, certainly not an investment recommendation, but a very nice 30,000 foot view of the collapse in European equities during the last few years.
The European financial sector is now smaller than Australia’s! Now that has to make you go “hmmmm”.
This chart is getting the hearts of contrarian’s fluttering – but the question is do you go long Euro banks or short Aussie banks? Hmm indeed.
Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest.
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