banks and wealth management ...

  1. 5,823 Posts.
    Hmmm... as I reported here previously, CBA foray into wealth management with the CFS acquisition has been bungled by David Murray who is said to be about to ann up to what analysts believe could be a much as a $2billion write-down.

    Others in the Bank sector are now realising that the 'wealth management plague' is catching as fund managers have disproportionate exposure to equities.

    Desperate to get an edge over the competition, fund manager's are now finding it difficult to 'unwind' and with property about to burst and low cash rates ... the traditional 'safe-harbour' seems non existent.

    Wealth Management (the industry's term) means mostly Superannuation and fund's are already red-faced over 2002 numbers largely due to the above and 2003 is already shaping up as downright ugly ...

    This situation is being exacerbated by high levels of fund 'redemption's which along with heavy selling off generally due to War worries, sees the Market locked into a steady downtrend which is beginning to look endless.

    Speculation of war with Iraq is determining world share market levels.

    At the end of the day, major 'blues' have good dividend yields and whilst now oversold, those with a medium/long term view will see recovery when the dust settles in the Middle East.

    The big job following this will be to sell the Bush economic recovery initiatives to a jaded US public long on patience and short on results.

    As long as our Market slavishly shadows that of the US, we shall be just the tail of the dog.

    As the first cruise missile whistles over Baghdad the XJO will follow the DOW into freefall.

    We should be attracting huge amounts of foreign investment but aren't ... only predators eager for acquisition of our resources/assets.

    This is only my view ... read the red stuff.
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