Tom McKay

A contrarian view on the banks. Dion Hershan from Goldman Sachs Asset Management disagrees with all the Big-Four-Bank naysayers out there (plenty of them) who suggest our Banks are expensive and risky. Hershan says that these sorts of claims reflect clumsy metrics used in valuations. He adds that the risks to the banks of a bubble forming in the housing market also lack support. There is no evidence of a mortgage binge. Property prices didn't move for five years but income growth did. Confidence is now higher, so it doesn't surprise me that there has been a bit of catch up in the property market. Read more: (VIEW LINK)


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