Top stock pickers at investment bank UBS say Australia's sharemarket has staged a full recovery from the coronavirus pandemic, rallying 20 per cent despite a near-certain recession and widespread unemployment.
Despite this backdrop, Mr Stoltz said the market has already begun a long-lasting recovery, drawing a stark contrast to the GFC where the country avoided a recession but the market fell 54 per cent over 17 months before reviving. Chief executive of Pengana Capital Russel Pillemer says he's still cautious about calling a bottom of the market."The speed of negative earnings per share forecasts has accelerated indicating that the market is close to fully digesting the impact of this crisis on company profits," Mr Stoltz said.
Mr Stolz said these bullish predictions will likely be short-lived, as overly optimistic analysts temper their expectations as earnings season draws nearer.
domp False premise. What is priced in is massive Govt and Central Bank support - “free” money. That is why increasingly bad economic news is seeing stock market increases. Won’t last.