Its happy days for anyone who owns shares in the Commonwealth Bank (CBA). Well it should have been but there value dropped a full 6.8% today on news of a record profit. What’s that you say “record profit?” Yes you heard right kids, record profits are bad news. To be fair, you would make “record profits” every single year if you whacked all of your money in a 6% long term deposit with the local bank and sat on your hands.

Interestingly, CBA’s result was only 3 percent less than their earlier forecasts, but the share market decided that this was terrible news and sold out at significant proportions. What is the madness that causes this behaviour?

Anyone who tries to tell me that this sell out has anything to do with this ‘evil’ bank increasing their interests rates an extra 0.05% on top of the Reserve Bank increase will be booed and hissed at until my throat is sore.

I am fully aware that in 12 months the CBA market capacity will probably be much higher than it is today but I do find the short term market movements interesting at times.

Why do you think such a sharp drop in a pillar of the financial community would occur?