How economic weakness is crushing the share market

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Some nice charts today from Deutsche illustrate the mounting headwinds for local shares:

The macro data is softer than the headlines suggest

A slew of recent macro data appear encouraging, pointing to an economy broadly headed in the right direction. But that seems inconsistent with the experience of companies. How can we reconcile these views? Our analysis favours the latter narrative – scratching beneath the surface of the data quickly reveals weakness.

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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.