Blackmores is the dead Australian canary

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Profit warning!

After the downgrade, trading on 60x PE. This is Australia. In equal parts massively overvalued and overexposed to the Chinese shutdown.

If Blackmores is right, and it takes three months to resume any kind of normalcy in China (let alone longer), then Australia will be sunk into deep recession mid-year as an income shock of immense proportions thunders south.

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.