As they say a picture tells a thousand words and the chart below of Commonwealth Bank (CBA) illustrates how the cream continues to float to the top in todays market i.e. CBA is only 8% below its all-time high compared to Westpac (WBC) which is well over 40% below its same 2015 level. A good result on Wednesday and CBA could easily be trading well into the $90’s in a matter of days, either way we believe it’s a matter of when, not if, that Australia’s largest bank tests the psychological $100 area – the markets currently forecasting a 3% fully franked yield moving forward but we see potential surprises on the upside with this important figure.
MM remains long and bullish CBA and the banks in general
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