Australian Investment Blog

**NAB has just announced a capital raising of $5.5bn **

Hopefully most readers have followed our lead, selling out most of their “yield play” stocks and sitting on some nice cash reserves ready to look for bargains. We have two major factors to consider closely when selecting levels to start accumulating local banks that have been simply smashed recently:

1. The Banks are correcting from a bull market since September 2011, hence the correction is likely to be longer / deeper than most imagined possible a few weeks ago. Healthy dividends will be paid on the way.

2. I remain very bearish US equities for the next few months, likely to have a negative effect on the ASX200.