Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Dear James/Shawn, Could I get your best guess on what the share prices of ANZ and WBC will do over the next 6 months ? These seem to be the least quality of the big banks. If you think their prices will likely fall as a mild recession hits, is there a case to be made to sell these banks going into 2023, and buy bank hybrids with a 6.5% running yield before they go ex-divi in the next few weeks ? John
Hi John,
Taking a 6 month view, the Hybrids will provide more certainty of income and lower volatility in price, however the answer depends on strategy / goals of the portfolio. In our income portfolio, we hold more hybrids than bank stocks while we don’t hold Hybrids in our Flagship Growth Portfolio. Given our view that we are mildly bullish into early 2023, we believe there will be more upside in holding bank stocks for this period – next year could be a different story however.
Our short-term target for ANZ is ~$26.50 and Westpac ~$24.50 i.e. slightly above recent swings highs but they have both recently traded ex-dividend.
Take a free trial.
No payment details required.
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
