I have a fairly ‘tight’ tolerance for risk when it comes to Commonwealth Bank. This is partly due to the incredible fall during the Global Financial Crisis.
If we compare last week’s performance of the big four banks to the S&P/ASX 200 as a whole an interesting comparison emerges.
For many people, it’s hard to imagine how the Australian banking system could be any different in the future to how it is today. But things change. People change. Businesses change.
The Big Four Banks are showing signs of weakness. They are all down from their 52 week highs.
Had they decided to lower the cash rate, the RBA would have been put in the position of being seen to be underwriting the banks’ profits.
Of course you should be worried about it. It’s your data. But at the same time, are you worried about it? After all it’s your bank. And in banks we trust, right?
Australia and New Zealand Banking Group [ASX:ANZ] has not had a great few months. This morning, though, was a different story. Shortly after opening, the ANZ share price rose by 1.2%. As at 11:17am, it’s trading up 1.73% at $27.61.
The irony in all this is that the perception of dividend stocks as a safe investment is one of the things creating the biggest risk for the Aussie market and Aussie investors today.
Is it all over for big banks such as National Australia Bank [ASX:NAB]? Investors have had a great run with the big banks in the last few years.
NAB [ASX:NAB] has just released a trading update for the third quarter. On the face of it, things look pretty good for shareholders.