Murray: Don't expect the economy to bail you out
The chart below comes from a presentation from Crispin Murray, Head of Equities at BT Investment Management. Murray says the high level of household debt is a significant contributing factor to the ‘slow grind’ economic conditions many companies are now facing. “If you look at household debt it is very high and it hasn’t fallen. That means this cycle isn’t going to be a supercharged cycle. So if you are a company facing a challenge you are not going to be bailed out by the economy. You are going to have to deal with the consequences.” Murray cites examples of Macquarie, Goodman and Transurban as three companies that have been able to re shape their businesses in the current environment and take more control over their own destinies.
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