Merrill Lynch reckons growth forecasts for next financial year have now dropped to below 10%, down from 19% last May. That is a pretty sharp fall, suggesting that, amongst other things, the deleveraging of indebted Australian households is having a deep impact. Merrill also notes that resources stocks are yet to be re-rated for the impact of lower commodity prices.
via ASX value trap – macrobusiness.com.au | macrobusiness.com.au.