Us Stock Market Investors ‘Astronomically Complacent’ About Trade War, Warns Clsa

Us Stock Investors appear

For Alexander Redman, Economic Data Show Significant Cause for Concern about Stock Pries. Us firms’ Capital-ExpectedTure Inteations have gone negative for only the fourth time this century; The University of Michigan Consumer Sentiment Index is at a Multi-Decade low; And two-thirds of us households now believe the unemployment will be Worse in 12 months’ time.

“Real damage was done to corporate and household sentiment during the period that the tariffs were being applied,” Redman said in an interview, adding that it’s unlikely they will “return to where you get in.”

Defying all odds

Even with the Trade War Hanging Over Markets, The S & P 500 Sits Less Than 5% Off Its Record High from February, and Close to the Median Year-Ed Forecasts Tracked by Bloomberg. What’s more, The Market Currently Sees 10% Earnings-P-Share Growth This Year and 14% Next Year, Versus the Compound Annual Growth Rate of About 6.7% in the Past Four to Five Decades, ACORDENT Who says expectations are too high.

“The sell-side are not going to tell you this because they were uniformly discredated in 2022 and 2023 for calling a us recession that Never Arrived,” He Said. “They do’t want to stand in front of that train against.” Redman is based in Singapore.

Because of Concerns about the US Economic Outlook, The Brokerage is Underweight Export-Driven Asian Economies Such as South Korea and Taiwan, Taiwan, Taiwan, and Prefers markets Such as India and Australia.

Redman Remains Neutral on Japan, Seeing the Shares as Near Fair Value, and on China, Where the Outlook is Constrained by Tepid Consumption.