Australian Investment Blog

People are enjoying one of the best bull market advances in many decades from the Australian banks, with CBA up over 340% since GFC lows in 2009, without taking into account excellent dividends. However, anybody that has had a reasonable time in the market will tell you that “good things don't last forever”. The complacency of the average Australian retail investor holding banks simply scares me. After participating in the majority of this bull market move, I now believe the sector will experience increased volatility and likely underperformance. Let’s look at the facts in very simple terms.

The banks are great companies, paying solid and attractive fully franked dividends.