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Interestingly, the mining sector is down as much as the banks today.
You may find out today why I don't like them.
To expand on this would be too much like giving unqualified advice, so I will refrain.
These are the present risks for the banks as I see them.
- Bad debts increasing (due to higher interest rates)
- Competition heating up (smaller players regaining market share, new entrants ie Aust post)
- LVR's tightening , ie less new loans being written
- Global liquidity issues not yet resolved
My take on banks is that you don't get much in the way of assets, you're buying a revenue stream.
At present their revenue stream is about as good as it should get for a while.
These are the present risks for the banks as I see them.
- Bad debts increasing (due to higher interest rates)
- Competition heating up (smaller players regaining market share, new entrants ie Aust post)
- LVR's tightening , ie less new loans being written
- Global liquidity issues not yet resolved
IMO banks are almost priced for perfection, meaning they are fairly priced as long as conditions remain perfect for them. Any hits to potential revenue stream and bank shares will get hammered.
For me, there is insufficient upside for the potential negative surprise so I feel there are better options at the moment.
Bought them YEARS ago when they
first came out at $5.40 i think CBA shares
Still have them they have not done me any harm