You can’t keep a good Goldman bull down:
How? Booming catch-up growth:
Driving booming EPS:
And booming margins:
So far, so good, in my view. But it starts to get more tricky when we come to valuation. The equity risk premium plays the key role. It’s a permanently high platuea!
Driven by Wall St’s much-loved equity risk premium:
In short, stocks can keep rising so long as there is no return of capitalism or inflation which means that policy risk is the key risk to the forecast.
Watch the macro!
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.
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.
Latest posts by David Llewellyn-Smith (see all)
- Facebook lifts Aussie news quality by banning itself - February 18, 2021
- Goldman: Why the US economy won’t overheat - February 18, 2021
- Bank profits boom on impariment write-backs - February 18, 2021
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