As housing sinks, stocks will follow

Thursday 27 September 2018

Get set for Australian stock profit downgrades says Damien Boey at Credit Suisse:

We have published an article about the outlook for market earnings per share (EPS). Historically, we find that more than 90% of the variation in EPS can be explained, if not predicted by:

1. Credit growth

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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.