One of the bull theories I've heard is the price is being dr...
One of the bull theories I've heard is the price is being driven by foreign investors. Well now with monetary easing in the USA, a weaker USD and more liquidity in the US, it makes American top tier stocks a more attractive investment. Do the foreigners take the gains, buy the cheaper USD and move into similar valued companies with better earnings potential? Thats a positive scenario, as the other theory for the 50 basis rate cut is the Fed is worried about a hard landing, which would be worse for the CBA SP.
I also believe the longer the SP treads water between $140-145, you would be more inclined to see a sell off. If CBA shareholders believe the rally is over they could all rush for the exits to lock in the gains - no new buyer and recent buyer wants the 3.2% dividend yield - they want to ride the wave to $150
We shall see. $CommBank (CBA.AU)$
I also believe the longer the SP treads water between $140-145, you would be more inclined to see a sell off. If CBA shareholders believe the rally is over they could all rush for the exits to lock in the gains - no new buyer and recent buyer wants the 3.2% dividend yield - they want to ride the wave to $150
We shall see. $CommBank (CBA.AU)$
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