Last week the ASX 200 closed at 5123 and this week it closed at 5120, looking at these two figures it would appear that not much happened.
Friday saw the market rally 1.75%. The previous three days were all down.
Market commentators are all now becoming negative on the banks and certainly concerned that they are looking over-priced.
Is a big fall about to happen?
The main drivers of the market have been the banks over the past 6 months. Their valuations are now looking stretched and even the yield investors need to take a step back and start to consider the loss of capital.
I expect that the banks will pull back soon.
The question is, will the cash coming out of the banks move back to cash and bonds or start to roll into the growth investments or second tier high yielding companies.
For long-term investors cash and bonds are not an option, as such I am looking to the growth companies and second tier yield companies to invest in.
Over the coming weeks we will be looking to start investing spare cash into these companies with a long-term view for growth.
Even the yield on BHP is better than the cash rate.