Weekly Impressions

Sam Ferraro

Global Founders Funds Management

The S&P500 moved sharply lower on Friday, shedding 3% apparently on continued concerns about China's future growth prospects. Despite the correction in recent months, the S&P500 still doesn't look particularly cheap, with the prospective PE still higher than historical norms. The headwinds facing US stock investors stem from the stagnation in expected profitability over the past 12 months and imminent end to the Fed's ZIRP (zero interest rate policy). For Australia, the market’s prospective PE of 14.5x suggests that the market is neither cheap nor expensive at current levels. Like the US, the key headwind facing corporate Australia is the stagnation of future growth prospects, although this has now dragged on for five years now due to the terms of trade shock. As far as reporting season goes, the market continues to punish even small misses from high growth stocks. I discuss the market pricing for Seek.com and the other market darlings that have confronted growth stalls in the past year. (VIEW LINK)


MORE ON



Senior Portfolio Manager
Global Founders Funds Management

Managing Director of Global Founders Funds Management, Sam has over 20 years experience in financial markets, with Merrill Lynch, JBWere and Goldman Sachs.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.