Recency bias
The RBNZ today ordered banks to stop paying dividends back to their Aussie parents.
The UK seems to be going down a similar path, with banks expected to share the pain of the COVID-19 recession.
The Aussie major banks immediately dropped more than 5 per cent on today's open due to the cautionary news.
Commonwealth Bank was down more than 6 per cent in early trade, and trading with a $59-handle.
The Aussie major banks immediately dropped more than 5 per cent on today's open due to the cautionary news.
Commonwealth Bank was down more than 6 per cent in early trade, and trading with a $59-handle.
As we discussed only yesterday, dividends will be slashed over the year ahead, so you need to be well prepared for that.
A short and sharp post today, then, on sticking to your principles.
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