THE DISTILLERY: Freewheeling financials

Jotters are nervous about Australia's surging bank stocks, with one likening their position to miners at the peak of the boom.

After a week in which two of Australia's big four financials delivered bumper profits, and soaring stock prices got analysts talking about a bubble in the sector, our commentariat still has banking on the brain. Some scribes spent the weekend worrying financial stocks could come tumbling down, while others think the institutions' big profits may become a political problem. Elsewhere, there are concerns about a potential Asian economic crash, and worries Sam Walsh won't have an easy time turning around Rio Tinto.

First up, at Fairfax, Malcolm Maiden says the question is not so much whether banking stocks are wildly overvalued, but whether they can continue to rise aggressively. He thinks the government might get in the way.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles