The Money Café with Alan Kohler
Aug 5, 2026 · 52 min · 13 segments
On The Money Café this week, Alan Kohler and James Thomson discuss Australia's love affair with CBA and CSL, SpaceX's earnings, the latest in Iran, house prices, and answer listener questions on…
Alan KohlerHost
Yeah, I mean, you just pointed out that, you know, there, there was a huge fall in the CBA price of 10%, uh, back when their quarterly came out, and they've recovered all of that.
So, so retail punters, moms and dads have actually been selling, [lip smack] but the big instos have been buying, and that sort of just keeps lifting the price, not, not automatically, but, but the, the price of the banks just keeps grinding higher even though everybody knows they're overpriced and overvalued and-
Uh, so passive strategies, um, you know, have to hold s- the, the, you know, the, the, the market weight.
Um, but what we've seen is that super funds need to be pretty index like in their e- allocations to Australian equities.
There's this thing called the your super, your future performance test, and that tracks basically, basic- it basically tracks the super funds against, um, the benchmark index.
The super funds don't want to get too far away from that, so that means they have to be a little bit passive like in their strategies when it comes to big companies.
The, the mo- most, most of the money, most of the flows into equity markets go to the biggest companies, and there's no one bigger than the banks, so that's what we're seeing there.
Yeah, I mean, you just pointed out that, you know, there, there was a huge fall in the CBA price of 10%, uh, back when their quarterly came out, and they've recovered all of that.
So, so retail punters, moms and dads have actually been selling, [lip smack] but the big instos have been buying, and that sort of just keeps lifting the price, not, not automatically, but, but the, the price of the banks just keeps grinding higher even though everybody knows they're overpriced and overvalued and-
Uh, so passive strategies, um, you know, have to hold s- the, the, you know, the, the, the market weight.
Um, but what we've seen is that super funds need to be pretty index like in their e- allocations to Australian equities.
There's this thing called the your super, your future performance test, and that tracks basically, basic- it basically tracks the super funds against, um, the benchmark index.
The super funds don't want to get too far away from that, so that means they have to be a little bit passive like in their strategies when it comes to big companies.
The, the mo- most, most of the money, most of the flows into equity markets go to the biggest companies, and there's no one bigger than the banks, so that's what we're seeing there.
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3 of 6
SpaceX's $10 Trillion Dream
Musk's grand plans face surprisingly tough skepticism.
Passive Funds = "Dumb Money"?
Why Alan calls passive investing 'dumb' today
Losing Our Home at 11
Alan recalls family's house loss and hardship.
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