Tempering Investment Expectations

Global market turmoil turned what was always going to be a hectic August into a chaotic one. Macro volatility aside, there’s no hiding the fact that the corporate reporting season was patchy at best and concerning at worst.

Reporting season gave the market additional evidence to further temper its expectations toward more benign economic growth. Estimates of market earnings were already falling heading into August, as per steady downward revisions for FY15 and FY16 earnings forecasts over the preceding 6 months. While it’s fair to say these low expectations were broadly met in FY15, it’s concerning that FY16 earnings were revised down a further 1%. Reported numbers have reaffirmed investor caution.

Download Morgans monthly Investment Watch update here.

For investment advice call PPT Financial on (03) 5331 3711.

DISCLAIMER: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.