Australia’s largest bank is up +6% in 2021 but it has paid an attractive $1.50 fully franked dividend. With housing prices posting their largest monthly advance in 33-years bad debts from real estate have rapidly become a false call by the doomsday merchants through the COVID nightmare. The press continues to be littered with warnings from “experts” but MM still believes with official interest rates around zero and the banks free to lend the backdrop remains robust for both housing and the banks – just imagine where prices would be if we had active immigration! APRA restrictions might be looming on the horizon but with small outbreaks of COVID still around it would be a brave bureaucrat to apply the brakes this year.
MM remains long and bullish CBA initially targeting fresh 2021 highs.
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