FNArena Talks | Jul 17 2012
Many commentators are counting on an "acceptable solution" soon in Europe, or on yet another hint of more quantitative easing by the Federal Reserve to support their predictions for a much better outlook for equities and commodities in the second half of 2012 and into 2013. FNArena Editor Rudi Filapek-Vandyck explains what most are missing is that the trend seems to have reversed for corporate earnings in the US and this means lower margins and lower profit growth going forward.
Also, on the economic front, economist expectations are for lower and lower GDP growth numbers in the quarters ahead. Most importantly, this is also happening in the US where the outlook now appears to be one where 2% annualised GDP growth starts looking too high. Stuff for a rally to the tune of 30-40% as some market bulls like to predict for next year? Hardly, warns the FNArena Editor.
He once again reiterates his broader market views haven't changed since 2009 and that probably makes him one of the most consistent market commentators in Australia, a fact accepted by presenter Peter Switzer who's on the bullish side of market commentary.
To view the broadcast of last Thursday's appearance, click HERE
Past broadcasts can be viewed via the Investor Education section on the FNArena website: https://www.fnarena.com/index2.cfm?type=dsp_front_videos
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