Markets call turning point
The markets are sending a clear message.
And they're telling you that the bottom is in for credit.
There have been plenty of soft indicators as noted previously here, including banks chasing mortgage business again, as well as introducing lower rates for investor and interest-only loans.
A lot of the #expert analysis pores endlessly over housing finance figures from the ABS, or changes in credit from the Reserve Bank.
But those figures are very much old news reflecting what has gone before...and often reflect decisions made many moons ago.
Take a look instead at what stock markets are telling you, especially through the lens of consumer discretionary stocks.
Here is the chart for AP Eagers (ASX: APE):
And JB Hifi (ASX: JBH):
And Nick Scali (ASX: NCK):
And Automotive Holdings (ASX: AHG)
And Harvey Norman (ASX: HVN):
You get the picture; we could pick out a dozen or more other examples.
And for completeness, here is the XDJ chart, which began to bounce hard off the lows once the banking Royal Commission finally wound up:
Analysts will continue to pore over old data, of course, but this is a real-time indicator with further gains in the post today.
Don't @ me: just because you don't like it, don't mean you're right.
