Banks need to fall 30% before they represent good value

Intelligent Investor

Independent Financial Research

Banks need to fall 30% before they represent good value. It's been a long time since we thought the banks offered good value. High residential property prices and the Australian economy's exposure to a bursting Chinese credit bubble add new layers of risk to any investment in the banks. Our two preferred banks are Westpac and Commonwealth Bank, followed by NAB, however their prices would each need to fall at least another 30% before we would consider them good value. We consider ANZ significantly more risky than the others due to its aggressive Asian expansion and it would need to fall at least 50% before it starts to look interesting. More insights can be found at: (VIEW LINK)


1 topic

Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.