FNArena’s Weekly Insights – June 26 2023
In this week’s Weekly Insights:
-Forecasts Under Pressure
-Which Stocks To Buy?
By Rudi Filapek-Vandyck, Editor
Forecasts Under Pressure
And when all is said and done, the dust has settled, and the verdict is in, we shall all observe it has been a fairly standard central bank tightening process, but one with a greater time-lag between tightening and real impact on economic activity.
Financial markets can be prescient and smart, sometimes, but one thing they do not possess is patience. Plus, of course, not everybody is in the market to be reasonable, sensible, and knowledgeable with a longer-term focus.
Ultimately, the share market will do the right thing, but not before it has first tried out all other options available. It’s my favourite summary of what a public forum for listed stocks is all about, time and again.
Three attempts to rally this year have ultimately resulted in very little progress made for the ASX, at the index level at least. Meanwhile, companies are issuing profit warnings and cautious/disappointing outlooks, while the trend in analysts’ forecasts is negative.
It does beg the question: how many more options are there before local traders and investors take it on the chin and start incorporating this more subdued and challenging outlook in local share prices?
