Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Monday, 29 July 2013

Barbecue of the shorters

An ongoing complete shocker continues for those who have continued to advocate shorting Australia's banks.

There has been a long-held theory from bearish commentators that in order to effectively short the Australian property market, 'investors' should instead short the major banks.

How has that played out? Well, in a nutshell, it could barely have gone any worse.

Commonwealth Bank (CBA) hit a record high share price today of $73.86.

Since the recently renewed call to short the banks, CBA's share price is up nearly 8% this month and almost 20% this year alone. The stock valuation has continued an astonishing trend, tripling in price since a low of around $24 during the global financial crisis.

Not only have the banks continued to deliver outstanding dividends, the capital growth has been electric too.

Even at today's elevated share prices, with a market cap of nearly $120 billion, the bank is delivering a dividend yield of close to 5%.

But as I discussed in a recent post, there is not much defensive value in the banks at these prices for new investors.

And, for those trading the stock rather than holding for the long haul, market signals from Japan (the Nikkei being on a miserable losing streak) are concerning.



Source: ASX

[Disc: I'm a long-term holder of CBA and two other major banks]