Retail sales
The Australian retail sales data is out.
The key for us is the below consensus month on month print, +0.5% expected, versus -0.22% actual.
The mortgage rate repricing, and associated slowdown in housing, will continue to weigh (we think) on retail sales more generally, and, the consumer discretionary/housing related stocks more specifically.
We have little direct exposure, and although retail stocks are quite cheap at headline PE’s, we think many are over-earning, and in a majority of cases are certainly running too much inventory.
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