Australian & New Zealand Banking Corporation (ANZ) is under stress as it approaches its $10 support level. The Australian banking sector is in good condition I would think, so this would strike me as a good base from which to buy. ANZ does have greater exposure to NZ, but the other banks are similarly exposed. Commonwealth Bank owns Auckland Savings Bank (ASB) and Westpac also has a subsidiary here. ANZ has been the leading Australian bank in the Asian market.
ANZ has fallen from over $30 to almost $10. That strikes me as a decent correction even if the banking sector is not going to be one of the best performing in the next few years. One needs to remember that the banks have a solid position in wealth management, and their control of credit and forex is unassailable thanks to government favours (barriers to entry). People will say that there are no barriers to entry, but the reality is that huge amounts of money would be requir
ed to duplicate the position of the major banks. Interestingly a number of Australian financial institutions are interested in becoming banks, so we might just see that reality. I would love to see an online bank like Shinsei Bank in Japan. But you really want a bank that can perform all the tricks. Its not enough to offer cheap services, you want a full range of services. eg. Stock broking. Some existing banks have relationships with third party brokers, etc, but these relationships are too arms-length to effectively integrate services. B
uy at $10, look for exit before $15. No buy & hold in this climate. We should be traders for the next few years, with the exception of gold & silver, where we can take longer term positions.
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Andrew Sheldon www.sheldonthinks.com
ed to duplicate the position of the major banks. Interestingly a number of Australian financial institutions are interested in becoming banks, so we might just see that reality. I would love to see an online bank like Shinsei Bank in Japan. But you really want a bank that can perform all the tricks. Its not enough to offer cheap services, you want a full range of services. eg. Stock broking. Some existing banks have relationships with third party brokers, etc, but these relationships are too arms-length to effectively integrate services. Buy at $10, look for exit before $15. No buy & hold in this climate. We should be traders for the next few years, with the exception of gold & silver, where we can take longer term positions.
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Andrew Sheldon www.sheldonthinks.com
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