Bit of a mishmash of forecasting and expectation out htere. So the sectors that rely on consumer growth and general GDP, like retailers and banks, are trading aggressively (retailers) and being sold off (banks). So confusion reigns supreme. The sectors that push GDP (mines) are being sold off. So somewhere, the general consensus has got it wrong. The market is betting on GDP growth (you have to be, if you want to give retailers a 22times PE), but it's bets are not convincing (because it is selling of the one industry that really benefits) - and, it doesn't actually forecast GDP growth, because it is not backing the main contributor. So here is my 2 cents worth, if you, like the market in general, believe in GDP growth, then you can only be in banks right now. They are sitting on 10 times PE (vs 22 for retailers), AND, they have started taking positions on property loans again, so the loan book should start growing.
