Australia: Stocks may be fully priced

Christopher Joye from the AFR suggests that Australia’s sharemarket may be “fully priced”:

New analysis from UBS poses an interesting puzzle: we have yet to see ASX earnings per share recover to pre-crisis levels. Top-rated UBS strategists Matthew Johnson and Andrew Lilley find that “aggregate equity market data shows declining earnings and weakening corporate balance sheets” in 2012…..

via Sting in inflation surprise.