Not a great time to own Australian banks
AFR article 17/10/2019 discussed the views of fund managers Platinum and Magellan.
' Even though risk-free rates have fallen, Mr Douglass was unwilling to rule out a scenario where US wage inflation increases to around 4 per cent and consumer price inflation increases to more than 2 per cent. That would force a rethink of the dynamic which has dominated shares in the era of ultra-easy monetary policy, and unleash a violent correction. "I'm not enamoured if I look out the next decade that banks are the right place to have your money yet 25 per cent of [Australia's] equity market is in banks," Mr Douglass said. "Very low interest rates aren't good for savers and it's not good for banks."