Edition 9

The December half profit reporting season was far better than feared and big cost controls have helped lay the ground work for stronger profit growth ahead.

While interest rates may need to fall a bit further, green shoots of recovery suggest we are at or near the low and more importantly, point to an improvement in economic and profit growth on a 12-month horizon.

While the share market has moved up ahead of profits this is not particularly unusual and price to earnings multiples are just around their long run average.