They’re risky, have falling earnings, and are very highly valued at 15x forward. Yet Aussie banks are still bid. Why?
A couple of Jonathon Mott charts from UBS tell the tale. It’s called the “dash for trash”:
Divy cuts anyone?
Houses and Holes
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 fouding 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.
Did you know the MB International Shares Fund has returned an average of 17.1% per annum and the Tactical Growth Fund an average of 10.4%? Register below to learn more:
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.
Did you know the MB International Shares Fund has returned an average of 17.1% per annum and the Tactical Growth Fund an average of 10.4%? Register below to learn more:
Latest posts by Houses and Holes (see all)
- Gotti demands MMT for ‘OK Boomer’ - November 15, 2019
- CBA: House prices to the moon! - November 15, 2019
- Recessionberg federation reform plan collapses in 24 hours - November 15, 2019
YOU MAY ALSO BE INTERESTED IN
Gotti demands MMT for 'OK Boomer'
This is the right idea but for the wrong folks,
ASIC hoses Costello push for mortgage fraud
Peter Costello covered himself in glory again
Where did the rate and tax cuts go? Debt
Recessionberg is looking for tax cuts. Via
Westpac: RBA still won't cut until Feb
Via Justin Smirk at Westpac:: The October Labour