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Why is the Aussie bank bubble bursting?

January 22, 2026 - 13:30 -- Admin

The great CBA bubble is deflating. The valuation metrics got completely out of hand. The forward P/E has tanked to about 24x, still well above the historical average of about 15x, so there is room for more falls.  Why is it so? One reason is that global banks have been re-rated amid the monetary easing

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