CBA bubble bursting?

Wednesday, 22 February 2023

I’ve called this several times in the last year and been wrong. The are having another crack at bursting the great CBA bubble:

I’d want to see the price below last year’s $85 low to be convinced a proper derating is underway.

It should be. CBA is bloated beyond reason at a 40% premium to its competitive set. It started during the crypto/BNPL frenzy. That hardly still holds:

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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.