The Motley Fool

Commonwealth Bank of Australia is down 10% – is now the time to buy?

Despite strong support from the nation’s largest miners, the Australian stock market has continued its woeful run today with the benchmark S&P/ASX 200 (INDEXASX: XJO) plummeting a further 1%. With today’s drop included, the market has now dropped a massive 7.8% since its peak last month.

Just another 2.2% and we’ll officially be in a “technical correction”.

As I warned over the last few months, it has come to pass that Commonwealth Bank of Australia (ASX: CBA) and its banking peers have led the charge downwards.

Until recently, the big four banks were the ‘go-to’ stocks, thanks to their ‘defensive’ natures and generous dividend yields. Now, investors are focusing on the risks facing the industry and the excessive share prices and selling them down en masse.

Commonwealth Bank has today dropped $1.01 or 1.3% and is trading at just $75.16. Although it might seem far more compelling now than when it was trading near $84 recently, investors still ought to steer clear as I think there could be more pain in store. The same goes for Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ), all of which are down between 1.6% and 2.1% today.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

Related Articles...

Latest posts by Ryan Newman (see all)