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Monday, 29 Oct 2018
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Some Investors Don't Care About Share Prices

It might interest you to know that the banks have had a rough trot into this results season with ANZ down 10.9% in the last month, Macquarie down 12.4%, NAB down 10%, Westpac down 6.7%. Against that, including franking, ANZ yields 9.2%, Macquarie 6.1%, NAB 11.0%, Westpac 10.3%. Compare the performance in the last month to the yield over the last year and one thing becomes apparent, chasing yield is a folly. Or is it?

The share price of an income stock is clearly far more volatile than the yield. Get the share price wrong and it’s a nil sum game if not a loss-making game chasing income. But still, and this is uniquely Australian, many investors simply don’t care about the share price. Let me say that again, in Australia

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