OK what have I Missed??????
today’s hotshot theory.
” While the Reserve Bank of Australia has been notably late to the rate cutting party, [ a Macquarie Bank equity strategist’s] measure of central bank cuts shows it (and arguably the Federal Reserve) have been outliers; since December 2023, 60 per cent of global central banks have eased in what has been the biggest cutting cycle outside a recession since the Russian debt crisis in 1998.
At the same time, his measure of global economic momentum, which tracks monthly changes in the OECD’s composite leading indicators across 16 countries, is pointing to pretty decent growth, particularly outside the US. “This is something we missed with our focus on Australia and the US,” he admits.
The strong reading from the Macro Velocity indicator helps to explain why PEs have jumped higher, including the PEs of the banks, which appear to be completely unconnected from their tepid earnings outlook.
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so, a bit of rotation??
