Value.able: The big switch
Owning a bank based on an island – that’s pretty attractive. Choosing one bank is no easy decision, but on balance, over the next few years, Roger Montgomery anticipates the ANZ to prove superior, provided costs can be controlled and expectations don’t put the price up beyond intrinsic value. But if you want to buy the best bank in terms of economic performance, it would be CommBank. Unfortunately, it is now expensive. Ranked by the Montgomery Quality Ratings only, the banks are all A-class companies, but which receives Roger’s coveted A1 Montgomery Quality Rating? Read Roger’s article at www.eurekareport.com.au.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Steve I
:
Which bank?
No bank for me thanks! I’d like to stay away from a massive wave of bad and doubtful debts that we ‘missed’ in the financial crisis.
Paul Rehill
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Good idea. If you look at rolling 12-month increases in outstanding bank debt over the past 20 years from the RBA’s statistical tables, you can see the huge decline in growth from 20% down to 8% for owner-occupied and investor mortgages. Any further increases in rates will be an extra dampener on loan book growth. I’d like to stay clear of bad debt risk if property investors/speculators start seeing unrealised capital losses rather than capital gains and look for an exit. It’s better to wait until the global debt crisis is resolved or at least the gap between house prices and wages to narrow. Either way, both scenarios are probably years off.