Thoughts on “Big Banks” – Part 2

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Question asked 26/11/2022

Thoughts on “Big Banks” – Part 2

Hi James and Team, Can I have your current view on the Banks above. I hold ANZ/CBA/NAB & WBC. Now the 3 ANZ/NAB & WBC have traded ex div - I've received the benefit of the dividends. Would you be selling /lightening these 3 holdings? Do you have price targets for these 3 ? When do you see these Banks possibly peaking in 2022 / early 2023. Are the current prices factoring in the Mortgage reset from fixed to variable from March /April next year? I like the Banks for Income but would really like to play my Bank holdings smarter than I have in the past by just holding. Also maybe switching from these 3 to Macquarie(MQG) ? regards Debbie

Answer

Hi Debbie,

Obviously we provide general advice only hence todays answer does not consider your holdings in any way.

A lot of questions here bundled into one but i think overall I can answer pretty simply:

We remain bullish the banks looking for the likes of CBA to gain around 5% into Christmas/2023 where we may consider lightening our exposure, a plan we’ve flagged for months.
similarly we remain long Macquarie Group (MQG) which we can see popping through $180 with some gusto into Christmas but again this is a move we would be more inclined to fade as opposed to chase.

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