Can anything stop the ASX?

The rally underway in the ASX is reaching pretty epic proportions. Most of the world is down today but not us, no! Here it is over one year:

And five years which shows the bourse rapidly closing in on its post-GFC high:

But the financial sub-index hasn’t waited to break out, it’s gone parabolic:

Industrials are closing in too:

Materials are lagging. Forget China!

The VIX volatility index is plumbing new lows:

The trailing PE is twirling towards freedom:

And the forward PE is 15, a full bull market condition. With EPS growth forecast for 2013/14 of 12%. I would have though anything above nominal GDP would be a struggle.

It’s put time!

Share

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.