Morning Report Wednesday 23 April 2014
Both ANZ and Westpac (WBC) traded at all-time highs yesterday, whilst CBA is my far off. NAB remains the laggard, in line with the last 7 years. Interestingly, I can see NAB being the best performer of the big four over the next 5 years. The price action for the banks is unfolding as I have anticipated, but my next call to start selling down holdings is out of sync with the recent years for the ASX200 and a major portfolio change, as I believe investors will start focusing on increasing interest rates in years ahead. I have been quoting the below repeatedly for the last few weeks:
On average over the last 21 years the main banks rally an average of 3.2% in April.
So far, with only 5 trading days left in April, this is unfolding - ANZ +3.7%, CBA +0.8%, NAB 0.1% and WBC +2.1%.
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