What's with the banks??
What's with the banks??? Australian banks are far from cheap. Investors will not get an argument about it from me. But banks' share prices are by far not as expensively priced as some commentators and experts are suggesting.?One recent development should have every investor's attention. CommBank (CBA) has decided to no longer neutralise dilution from its Dividend Reinvestment Plan (DRP), which indicates the bank is intent to use its current valuation premium to further strengthen its reserves/balance sheet, while allowing shareholders to suffer from dilution.??Rules of demand and supply apply inside the share market as much as they do outside of it. Assuming CBA's example will be adopted by the rest of the industry, I think this is the clearest sign that banks' share prices are likely to underperform the broader market this year. This does not mean they are cum a significant sell-off (which they are not).