I know you all have been breathlessly awaiting my follow up report on the Australian banks. Fortunately, the wait is over. In this section I attempt to add even more evidence to support my claim that the housing markets in AU and NZ are overvalued and are on the precipice of a fall. I also had the unique opportunity to interview a very insightful AU hedge fund manager who gave me an incredible amount of information. The piece also includes an analysis of why I think ANZ and CBA are the best in class and why I see BOQ as the weakest of the group. I then conclude with some strategies for investing based on my thesis regarding the housing market. For those of you who are not particularly interested in the stocks themselves, I still think the commentary from the fund manager and the comparison regarding affordability of housing markets in the English speaking world are very interesting. Just like last time, I have kept the article in Scribd format to preserve the formatting of the charts and quotations.
(Picture courtesy of www.abc.net.au)
Analysis of Australian Bank Fundamentals
