But to take a short position in the banks was “dangerous”, he said, the biggest reason against the move was the $600 billion strong army of self-managed superannuation funds which still value these stocks for their irresistibly high dividend yield.
“In addition, Aussie banks are some of the safest and most profitable in the world,” he said.
“We think it is too risky to be short any of them.”
Is the great Australian bank short a ‘widow maker trade?’
David Llewellyn-Smith
Friday 13 November 2015
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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