According to Bell Financial Group’s Richard Coppelson, now is the time to buy the banks minus CBA of-course. And we agree. Why you ask? It’s because they’re all due to report at the end of October early November. CBA and Bendigo & Adelaide Bank have different reporting cycles. If history is anything to go by, investors usually load up on the banks just before they report. Coppelson plugged in the figures and worked out that over the last 20 years, it happens almost every year. There’s a run up in the banks during October in the lead up. The only exception is when there is a big “global macro” event that causes everything to get hit, i.e. a GFC. Below is a chart that Coppelson put together showing the bank sector movements in October since 2000. The other reason is that yield hungry investors will buy the banks to collect the dividend paid usually after bank reporting season is over. Most will buy the banks at least 45 days not including the day the stock was acquired or disposed of in order to qualify for the imputation credits with regards to the franking on the dividends received. So for that reason, October could bring about a rotation effect, where money comes out of stocks that have already paid dividends (Telstra, Westfield, AMP, BHP, Rio Tinto, QBE, Suncorp) and into the banks. In total the three big banks will pay out roughly $8.23bn in dividends based…

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