The ASX did not fare well in the recent selloff

Friday 5 February 2016

A couple of charts today from Morgan Stanley suggest strongly that if the Mining GFC intensifies again, which we expect it to, then Australian shares are more in the firing line than just about anywhere else:

Yes, that’s little Aussie shares down there at the bottom below DM and EM. Yet despite this, valuations remain rich:

We are in line for a further nasty de-rating.

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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.