MY favourite SUS has really let me down. It's a small company, probably little or no access to capital markets, attracting customers for its loans through attractive rates, great service and superior debt portfolio management.
Most commentators are convinced we are heading into a recession. A recession stemming from the enormous debt levels resulting fromsuccessive QE cycles, each lesssuccessful than the last.
To which must be added infltion, coming out of covid, and this war.
Central Banks are raising rates to reduce demand to kerb inflation. And at the same time, they are not renewing QE, reducing public debt and private liquidity.
So consumers and companies are hit by rising costs, falling real wages and bottom line, and recessions reduce revenues.
I'm just wondering if forward earnings estimates need to be quite radically revised.
And whether more emphasis should be given to the future as earnings are key to dividends and share prices and future earnings are likely significantly different from the past.
