ASX – Financials and Resources
Hi guys, sorry, it's the 2nd question from me this week. Back to the local index, ASX200. If resources finally get a kick up the bum and fingers crossed, we finally start to see rates drop towards the end of the year, would this not carry the ASX into new highs? I'm thinking as soon as rates start to ease, new builds may increase giving the banks more mortgages to issue. As we know, they don't like passing down the rate drops to quickly, so again, increasing their NIM can only be a good money maker. The combination of resources and financials is normally a good combo for us. How much of this may be priced in already in anticipation. Even with the banks so high, surely there is no one left to sell from the big institutions. Regards, Simon
