The major ASX bank shares dominate the S&P/ASX 200 Index (ASX: XJO), not to mention many conversations about the Aussie share market.
However, 2020 hasn't been the best year for the Aussie banks. But one leading fundie thinks that might be about to change…
Why ASX bank shares could be set for a rebound
The latest fundie to step up the plate is Ausbil's Paul Xiradis. The Aussie fund manager provided his thoughts on the current market and macro outlook for 2020 in a recent client memo.
In the memo, Mr Xiradis said if you believe in a strong Australian and New Zealand economic recovery, "you have to be comfortable with the banks". He commented that ASX bank shares have become "a pretty attractive proposition" after the coronavirus-induced selldown.
That's largely due to the nature of the banks' operations and role in the economy. The banks are "leveraged to an improving economy" and a faster than expected recovery could be a huge factor. That means now could be a "fantastic opportunity" for investors to re-weight to the banks, according to Xiradis.
Ausbil increased its exposure during the recent bear market and is now "the most overweight" it's been in the banks for years.
How have the banks performed this year?
In short, not well. Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation (ASX: WBC) shares fell 40.4% and 45.1%, respectively, from 14 February to 23 March.
However, the recovery since that point has been strong. CommBank is down 9.0% for the year, while the benchmark ASX 200 index has fallen 10.2% in 2020.
If a leading fundie like Mr Xiradis is bullish on the banks, maybe it's time to give them another look in 2020.
What other shares is Ausbil looking at right now?
It wasn't just ASX bank shares that Mr Xiradis has his eye on right now. Ausbil has increased its exposure to Qantas Airways Ltd (ASX: QAN) and Transurban Group (ASX: TCL) ahead of an anticipated recovery.
In the retail sector, Ausbil is also looking at particular companies within the healthcare, retail and real estate sectors. That includes high-yield options like Goodman Group (ASX: GMG) and JB Hi-Fi Limited (ASX: JBH).
