So bank’s had moved from 0.5x PBV to now near 0.9x, its done, next move is tougher, though with higher rates, their NIMs may surprise.
The supply chain destruction play is still in full-on mode, look at energy/agri/shipping.
The extinction event of SMEs – that’s ongoing as well, look at the bad debt buyers and the continued growth of non-bank finco’s.
General positive note – Over the weekend my favourite coffee shops and restaurants were packed! Granted this is a small subset, but it goes into my thesis that the strongest best brands/players in each industry survive, capture the market, operate on lower costs, will have pricing power etc etc and when things open up completely, without these stupid draconian government instituted directives, they’ll soar. But you and I, as the consumer, will pay in the form of higher costs across the board….
