Strategy radar 19/10/2012 > medium-term Equity Market outlook: earnings are ‘missing’ from the rally

Highlights this week include: Bank of Queensland’s confirmation of its $17.1m loss, driven largely by an increase in bad debts ; the consequence of NAB’s aggressive pricing campaign resulting into a $20B funding gap between household loans and retail deposits, as well as the unexpected provision of an extra $250m for bad debts; Google’s plans to expand their new credit card business, and new ASX guidelines for company disclosure.

After previous snapshots on Cars and Housing outlooks, we are looking this week at the medium-term Equity Market perspective: especially the curious mismatch between relatively low company earnings growth vs the current equity rally. An insight flagged by Deutsche Bank’s research that is equally relevant to ASX investors, and informed critiques of the imperfect market hypothesis…

As per usual, main sources (and other recommended data points) are curated in Pearltrees:


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