Summary: With the banks delivering such incredible outperformance in recent years, we suspect many investors have substantial allocation to this sector. But given the banks offer a less attractive valuation case than three to four years ago, we ask whether it is sensible for investors to retain such overweight positions.
Key take-out: Investors with unbalanced portfolios need to consider whether they are comfortable forgoing the benefits of diversification to generate a yield from the Australian banks.
Key beneficiaries: General investors. Category: Shares.