Tom Scollon


Although I think bargains are quirks in life anyway.


Let’s look at the charts – the index XFJ and the four majors:


ANZ Banking (ANZ:ASX) Weekly Line Chart


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S&P ASX 200 Financials (XFJ:ASX) Weekly Line Chart


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Commonwealth Bank Australia (CBA:ASX) Weekly Line Chart


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National Australia Bank (NAB:ASX) Weekly Line Chart


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Westpac Banking (WBC:ASX) Weekly Line Chart


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And if we look at the monthly XFJ the sector could get back to levels most of you will not have experienced in your lifetime:

 

S&P ASX 200 Financials (XFJ:ASX) Monthly Line Chart


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I am not sure if banks will even be bargains then – we need to look at the landscape when we get there – in another 4-5 years.

But in the meantime, we will see rallies which some investors will think are new long moves high. Beware. But you have plenty to contemplate before then.

There may be some good value in riding the rallies but exit timing will be really important. And I will talk about this when we get there.




Enjoy the ride

Tom Scollon