Earnings crash & bifurcation
Thought-provoking and slightly alarming analysis at Livewire, showing how the Aussie 18-month forward expected EPS has crashed to the lowest level since the financial crisis.
Stock prices are now arguably more disconnected from economic reality than they've ever been before...yes, even more so than they were in 2019:
Source: Refinitiv, State Street
By rights Aussie banks should halt their dividend payouts while rebuilding capital buffers, but I doubt that'll ever happen given the mammoth level of vested interest.
