Gerard Minack, Morgan Stanley’s head of developed market strategy, created this chart to show how 2013 earnings expectations for Australia’s stock market — the S&P/ASX 200 — have deteriorated through out the year. Australia’s economy is largely driven by a mining industry, which has been supplying the emerging markets. Those emerging markets have slowed significantly.
It’s worth noting, however, that the Nasdaq has had net upward EPS revisions. And S&P 500 EPS revisions have been revised down only modestly.
The lack of earnings expectations volatility is certainly welcome by investors.
Below is the chart from Minack.
- DM EX-US: Developed Markets excluding the US
- MSCI EM: Emerging Markets
- EURO STOXX: Europe
Photo: Morgan Stanley
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