Are you being served? Australian Banks in context
Australians seemingly have a love affair with Australian banks. They get their home loans through them; deposit their money with them; and then plough their superannuation back into them (via both the holdings of Superannuation funds that generally have 30% held in Australian equities of their assets and SMSF’s who like their full franked yields)! And to be clear, this has served them well: house prices have increased dramatically in the last 39 years and the shares of, say CBA, have gone up at 11% per annum compound since 1991, plus a very handy 5-6% dividend yield along the way. It has been a lovely symbiotic relationship... But as we draw towards the end of this great expansion, one of the longest in recorded history in the developed world, this love affair may start to sour. The latest blog from Morphic: (VIEW LINK)
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Chad co-founded Morphic Asset Management in 2012. As a stock picker Chad is also a generalist but has strong regional knowledge of Europe and the Americas. He has also been awarded the CFA Charter.