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?
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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