Are banks a good buy or a good-bye?

Founder and Publisher of the Switzer Report
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Two significant actions last week have made me more confident that our big banks remain a pretty sensible play for anyone who’d love term deposits to be 5% or 6%, which, of course, is a forlorn waste of time to even contemplate.

These two notable developments were the ASIC belting by the Federal Court over its fine imposed on Westpac for failing the responsible lending test; and then Donald Trump blinked as the bond markets inverted yield curve gave rise to recession headlines and a tumbling stock market. I know it wasn’t an easily remembered blink but he did show he doesn’t want a stock market rout, which would be a forerunner to a recession in 2020 — his election year.

So why are these two events good for the outlook for bank share prices?

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