Strap yourselves in. Earnings season, which gets properly under way today, is likely to be a rocky ride, with stretched valuations in the industrials sector set to collide with weak business conditions and a string of economic worries.
“Investing is about results and expectations,” says Dion Hershan, managing director and head of Australian equities at Yarra Capital Management. “We are heading into a period where we’ve had incredibly strong market performance and we’ve actually got high expectations, particularly for those industrial companies which are at record valuations.”
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