The bubble of a lifetime in CBA shows no signs of bursting at 26x growthless earnings.
Hilariously, on two-year forward earnings, CBA is the Magnificent 8th!
And Aussie banks are plain stupid in context.
Magnificent 8th, CBA, enters ludicrous bubble phase
David Llewellyn-Smith
Friday 17 January 2025
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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Someone said that CBA has a bigger market cap than Goldman Sachs. This is a yuuggee bubble. Not long to go now until it pops.
Nah mate. It’s Australia. This time it’s different.
there are going to be a lot of unhappy super funds when that bubble bursts.
Are super funds the reason why the bubble won’t burst? Seems that super funds are very much a part of the Ponzi Scheme.
Super funds are apparently legally obliged to invest a proportion of their funds in Australian assets.
And our sharemarket is predominantly banks and miners.
But why do much in commonwealth vs other banks?
Speaking of rate cuts – the WSJ reports the average 30-year mortgage in the US rose to 7.04% this month.
Rates are going to have to go up to fund all of Dr Chalmers off the books spending and the prop up the magnificent Pacific Peso. The lady from Armidale knows the only way is up.
I always forget, so it should be puts I’m buying on CBA then? Or is it calls?