Chart of the day: Bank sector trading at a discount to long term average PE
The chart below shows Bank sector index trading at a discount to long term average PE bands. The regulatory risk, property bubble and slowing economy supported a decline in premium while the recent global selling oncurrency worries has driven valuation to multi year lows when looking through the dividend yield premium to bonds. We continue to expect the bank sector to recover as the global selling pressure runs out.
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Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...