And after we consider the impact of the credit boom on S&P 500 earnings we’d say that corporate earnings are never going to be the same again. They may revert to the mean. But it will not be nearly as high as it was at the highs of the credit boom. It’s undeniable that the expansion of the credit bubble and the advent of securitisation and derivatives led to…
July 28th, 2009 | Dan Denning | 13 comments | ContinuedAll Posts Tagged With: "resource stocks"
Big Australian Resource Stocks Up 24% in 2008
There’s just one full week left in the financial year. And what an awful year it’s been! The All Ordinaries index is down just over 14% for the year. It’s the worst showing for the benchmark since 1982. But when you thin-slice the performance, you find something interesting. Specifically, you find local evidence of the global battle between the forces of commodity inflation and asset deflation. The big Aussie banks are down by nearly 30% for the financial year. Meanwhile, the big resource stocks are up 24%.
June 23rd, 2008 | Dan Denning | 2 comments | Continued