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The CBA is again reporting record profits.
Just read Keens latest article and he raised the interesting point that bank prices tend to move in line with house prices. He noted that some of the hit has already been taken by the banks. As an insurance policy against falling house prices owners could short the banks. thoughts?
Didn't banks make record profits during the height of the GFC?
woooooow!!!
shorting banks? Now that is a GREAT way to lose an infinite amount of money that you don't even have to begin with!
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Just read Keens latest article and he raised the interesting point that bank prices tend to move in line with house prices. He noted that some of the hit has already been taken by the banks. As an insurance policy against falling house prices owners could short the banks. thoughts?
True, presumably if 1 or more of the banks go under (or gets to the point where it needs to be nationalised) then the AUD would be hammered? making physical gold very attractive. interesting - is so hard to envisage a rampaging commodities boom amidst a housing and AUD collapse. I suppose if China stumbles and the resources boom fails then it is far easier to conceive
How much have house prices grown in Western Syd since he sold out? Have they doubled yet?
Has made a lot of people a lot of money.
I would never recommend going open ended on it, unless you are a big hedge fund, a couple of which are shorting the Aussie banks as we speak. Lets see how they go shall we?
I'm not sure, but I seem to remember a unit in the same block recently selling for not a lot more than he sold for, taking inflation into account.
So it probably wasn't such a bad move in his case, lets see where we go from here.
How has this made a lot of people a lot of money? From what I can see, bank prices have continued to go up and are at record highs, as are their profits.
And when he wants back in at his hoped for 40% discount, he will be paying the extra stamp duty, solicitor, etc.....how much will he be bragging about his stellar move on the housing market ?
Shorting banks....good luck with it...!
I would have thought that owning banks and being their customer was a better hedge...