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1.Market Observations, 2.Economic forecasts, 2.share trading, 8.Was Sticky

21 June 2017 (AFR) – Morgan Stanley sees ASX200 falling 10pc: how to trade an economic downturn

(21 June 2017, AFR, p31, by Myriam Robin)

‘The S&P/ASX200 will shed 10 per cent of its value over the next year, according to Morgan Stanley. But a falling market needn’t spell disaster. Morgan Stanley has one of the most bearish views of the Australian sharemarket, having significantly downgraded its 12-month index forecast earlier this month due to concerns about record-low wage growth, higher cost-of-living expenses for things such as electricity, and more restricted access to credit in the Australian economy.’ <snipped…>

‘”The economic weakness has reflected itself in market earnings momentum, with the three-month earnings estimate revisions ratio turning meaningfully negative for the first time since the middle of last year,” a team of strategists led by Stephen Ye wrote.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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