Virtually Live: 17 September 2026
Sep 17, 2026 · 12 min · 6 segments
Sep 17, 2026 · 12 min · 6 segments
I can't say I'm too surprised and I have I guess, been trying to kind of paint a picture of the headwinds that markets are facing at the moment.
And I've kind of tried to, again, talk about the kind of the two-speed nature of these improvements in the underlying earnings outlooks for these companies because that's the distinction.
If they were smaller companies, you wouldn't see the sort of earnings growth we're seeing.
But that's just, you know, when you've got the Magnificent Seven, the biggest companies in the world that are growing earnings at, you know, 10, 20, 30 plus percent per annum at the moment.
But again, beneath the surface, you'll see in the US that there are a lot of companies struggling.
And so it's not as straightforward as seeing an index at or near all-time highs.
And in Australia, of course, kind of not getting the benefits of that boom, except in areas like And yet our markets have headed higher lately, of course, and that's very much just a result of multiple expansion.
The banks in particular, of course, again, in a slowdown, kind of in a stagflationary environment that we're kind of in at the moment, it's a very difficult environment for them.
credit growth is likely to be very slow and obviously that's going to mean their impact to grow earnings from here in the short term is going to be very constrained and obviously any issues with the property market could ultimately flow through to bigger loan losses which again you're starting to see in their outlook statements them talking about that and this is the point in the cycle and that's what I kind of said maybe six months ago when they were all at all-time highs is like And in times where everything is going right for the banks, that to me is when you want to be selling them, especially at all-time high multiples as they were.
But the problem, of course, in Australia is that Our index is almost entirely dominated by the banks.
Resources obviously having a little bit of a better time because obviously the part beneficiary of course is a lot of these metals like copper in particular which is now actually the biggest For the first time ever, earnings contributed to BHP's most recent result.
I can't say I'm too surprised and I have I guess, been trying to kind of paint a picture of the headwinds that markets are facing at the moment.
And I've kind of tried to, again, talk about the kind of the two-speed nature of these improvements in the underlying earnings outlooks for these companies because that's the distinction.
If they were smaller companies, you wouldn't see the sort of earnings growth we're seeing.
But that's just, you know, when you've got the Magnificent Seven, the biggest companies in the world that are growing earnings at, you know, 10, 20, 30 plus percent per annum at the moment.
But again, beneath the surface, you'll see in the US that there are a lot of companies struggling.
And so it's not as straightforward as seeing an index at or near all-time highs.
And in Australia, of course, kind of not getting the benefits of that boom, except in areas like And yet our markets have headed higher lately, of course, and that's very much just a result of multiple expansion.
The banks in particular, of course, again, in a slowdown, kind of in a stagflationary environment that we're kind of in at the moment, it's a very difficult environment for them.
credit growth is likely to be very slow and obviously that's going to mean their impact to grow earnings from here in the short term is going to be very constrained and obviously any issues with the property market could ultimately flow through to bigger loan losses which again you're starting to see in their outlook statements them talking about that and this is the point in the cycle and that's what I kind of said maybe six months ago when they were all at all-time highs is like And in times where everything is going right for the banks, that to me is when you want to be selling them, especially at all-time high multiples as they were.
But the problem, of course, in Australia is that Our index is almost entirely dominated by the banks.
Resources obviously having a little bit of a better time because obviously the part beneficiary of course is a lot of these metals like copper in particular which is now actually the biggest For the first time ever, earnings contributed to BHP's most recent result.
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