There’s a chasm opening up under Megabank equity

Wednesday, 10 October 2018

There is no stopping it. Australia’s major banks are in a monster bear market. CBA and ANZ are down 28%, NAB is down 30% and WBC is down 33%:

CBA and WBC have both broken monthly chart support and are in free fall. They appear to have much more downside.

The triggers are obvious in the Hayne Royal Commission remediation costs and the building housing bust. The news flow for both is only getting worse, New Daily today:

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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.