Normal
There's a whole heap of potentially mean reverting (in a negative way) key metrics for the dominant sectors and large caps on the ASX (Big Banks, Property and Commodities).However I'm not sure they will be come home to roost until the next global recession hits, which U.S indicators suggest is not happening anytime soon. So based on that, I see a 4500-4800 XAO type floor until new factors come into play.But at some stage those key metrics including bad debts (reversion to the mean bad debts ratio would take off about 15% EPS for the big banks) will happen with the appropriate trigger.
There's a whole heap of potentially mean reverting (in a negative way) key metrics for the dominant sectors and large caps on the ASX (Big Banks, Property and Commodities).
However I'm not sure they will be come home to roost until the next global recession hits, which U.S indicators suggest is not happening anytime soon. So based on that, I see a 4500-4800 XAO type floor until new factors come into play.
But at some stage those key metrics including bad debts (reversion to the mean bad debts ratio would take off about 15% EPS for the big banks) will happen with the appropriate trigger.
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