Morgan Stanley: Sell banks on household stress

Thursday, 5 October 2017

Via AFR:

Morgan Stanley’s Richard Wiles reiterated his recommendation investors stay underweight banks as he issued lower cash earnings per share forecasts for the big four, Bendigo Bank and Bank of Queensland for the next two years on Wednesday.

…The analysts conducted a survey of 1836 households in an effort to identify household conditions, sentiment and potential responses for higher rates.

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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.