Back in September I urged you to be wary of bank stocks and the risk of them cutting their dividends. I’m sure I reiterated it enough to sound like a broken record.
The Good Lord knows I don’t always get it right. But that turned out to be a pretty good call.
We’ve seen Westpac cut its dividends and ANZ cut its dividend franking.
We’ve also seen NAB and Westpac admit to breaching money laundering legislation.
Now the banks are being hit with class actions.
All this pressures their future earnings and damages their reputation.
Here are the returns for the Big Four banks since 20 September to 21 November:
|Stock||Price @ 20 Sep||Price @ 21 NoV||Change +/-|
The situation may stabilise from here. I’ll keep you posted on my thoughts on that.
In the meantime, I think it’s worth considering a sector away from the financial fiddlers.
That’s the natural resource market.
That’s why I’m vacating the stage today to clear the air so you can hear from my mate and colleague Shae Russell.
Her expertise and focus is bearing down on opportunities across this space…and she has lots to share with you over the next few days.
I’m thrilled she agreed to share her insights with you.
That’s why I’m going to hurry out of the way and let her get on with it…