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Anyone buying banks yet?

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So_Cynical said:
Its mostly SMSF's affected by the new franking credits thing, what will those people do? whats the alternative? they will mostly cop it sweet and get a 8% yield instead of 9.5
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Pensioners are the losers here (super pensions) and low income earners where they can't offset the credits against any taxable income. There is a belief that property trusts may see some interest due to their unfranked dividends however given the complacency of investors it is unlikely to be massive.
 
Garpal Gumnut said:
The banks are stuffed.

Buy CBA at anything under $40.

Take out yer dead.

gg
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but at $40 what yield are you sorta expecting? I mean, at that do you see 6% grossed up - or more or less? or is that not part of $40? (capital gain thought only?)
 
HelloU said:
but at $40 what yield are you sorta expecting? I mean, at that do you see 6% grossed up - or more or less? or is that not part of $40? (capital gain thought only?)
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Yield changes with Capital Value.

CBA is a dead dog which will fall on charts with lower highs and lower lows.

I have been in conversation via email with Matt Comyn CEO of CBA and he is concerned.

He has assured me he will get back to me and I will advise ASF Members when he does.

He sounded if not disgruntled with his bank's performance, certainly gruntled.

He has kindly through some malfunction added his iPhone number which I am happy to share with ASF members for a social fee of $1001.

Cash

gg
 
Garpal Gumnut said:
Yield changes with Capital Value.

CBA is a dead dog which will fall on charts with lower highs and lower lows.


gg
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GG We are fortunate that we only have four major banks, they control the Countries money flow, so it is quite easy to control them through regulation.
The Australian Governments know this, so it is a speed bump in the economy, it isn't a multi car pile up.
Imagine if there were four hundred banks out there, running amok, that's what happened in the U.S.
 
I’ll give his email and mobile number away for free to anyone who will post the content back on ASF.. interesting how the person heading the division most at fault for CBA’s misconduct got promoted to CEO.. smart guy but another executive thief who doesn’t give a $hit about CBA’s customers. See how he goes following on from the flop Ian Narev.. in any case if you resort to investing in Australia’s banks you clearly lack imagination and your returns will be punished accordingly..
 

So what would you be switching to?
What dividend play would you be recommending?
Or what capital gain play would you be recomending?
For those who derive an income from investment.
 
I'd stay away from the banks until the dust from the coming property collapse settles.
 
The big 4 banks will be very attractive buying shortly. Much of the price contraction has been built in following the RC and yes there could be some further downside possible following results. Also IF property values decline as severely as many rear vision experts suggest then I would suspect that less property will come to the market resulting in a boost to renovations like in previous property corrections whilst the excess supply of new construction meets existing demand at an affordable price. That said the eastern seaboard has the largest hangover to go through as the foreign investor has significantly fallen away. As of a few months ago Chinese investment had fallen over half its peak to $15b according to FIRB. Interesting times!
 
The large bullish triangles in the banks have disintegrated. A more typical zigzag is the next best scenario which allows for a move down to the lower target on the chart. NAB is the only one of the big four where price has remained above the lower trend line of the triangle.

Sentiment on the banks is nearing extreme levels (negative) which is a great contrarian indicator as well. Patterns need to prove before I buy though.
 
When the election is called,
And when it becomes clear that labor is a shoe in.
That's the day.
 
I was reading a report today that claimed SMSFs were moving away from the ASX20.
 
Darc Knight said:
I was reading a report today that claimed SMSFs were moving away from the ASX20.
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My guess would be that they are very exposed to the banks, also to get a decent retirement income you had to be all in, with the $1.6m pension cap.
The banking Royal Commission and subsequent drop of 20-25% in the banks share price, will have seen a lot of SMSF capital value drop, many will be bailing out to retain capital. IMO
There is no point in having shares without franking credits, when you can get bank interest and protect the capital. Just my guess.
But I did mention this could happen, with silly Billy's franking credit brain fart, I'm going to need a new pair of slippers.
 
It will be interesting to see how the banks are faring with the collapsing property market and slowdown in house purchases. The last eight months has been poor and the outlook is not getting better.

I wouldn't be counting on profits and dividends holding up.
 
The RC will recommend criminal charges for executives, board members etc

APRA has done a lot to control the banks (heavy lifting)

Just remediation, profits and dividends to finalise
 
judge tore up WBC & ASIC's agreement.

claims WBC can assess income in all manner of ways.

going to be interesting to watch the outcome of the court cases from the RC etc and the bank shares prices over next 6months
 
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