This mispricing is one for the ages. As Australia heads for inflation blowoff on the back of shocking political mismanagement around energy, forcing the RBA to hike rates higher than the underlying economic structure can cope with, house prices are crashing with much worse ahead.
In the firing line of this is Aussie banks who will be forced to write down assets, write up loan losses, cut profits and dividends in the year ahead.
Yet, the big five are trading like none of this is coming. All are far above previous cyclical lows for multiples with CBA outrageous:
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