Moore: Banks are showing a number of red-flags
Paul Moore, CIO at PM Capital has “urged SMSF trustees to re-allocate their SMSF assets from major Australian banks into international companies, claiming Australian banks are showing a number of red flags”. Speaking at a lunch in Sydney yesterday, Moore said while SMSF trustees and even professional investors may be stuck with the habit of having a large allocation to bank stocks, major Australian banks are likely to be reaching the end of their rally. “They haven’t actually done much over the last 18 months, so it tells you that they’re struggling a bit because their earnings are maxed out and their valuations are pretty high. I suspect we really are in the final innings for banks in terms of absolute performance relative to what you can get elsewhere.” Moore said investors should be looking at overseas banks which are generally 20 to 25 per cent cheaper than Australian banks and with an elevated currency. Full article from SMSF Adviser here: (VIEW LINK)
4 stocks mentioned
We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world, using a focused, patient and considered approach to finding simple investment ideas.