Sunday 20 August 1995
"Investors are terrified of making the same mistakes as they did in 1989- 90, when they ignored reductions in Gross Domestic Product forecasts at their peril," says analyst Robert Buckland in his 1995 Profits Pathology. "However, the current situation is much more like 1984-85 when a mid-cycle slowdown was achieved without a collapse in corporate profits."
Mr Buckland argues that the downgrading of more cyclical companies has therefore been overdone. There is scope for raising profits forecasts in some sectors such as engineering and vehicles, he believes. Any reduction in interest rates would provide further help too.
The interim reporting season for companies with calendar year-ends has been characterised by profits coming in ahead of forecasts. Yet analysts are reducing more forecasts than they are raising.
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- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 3 Natalia Molchanova: World's most successful free-driver is missing and feared dead after disappearing in Mediterranean
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Gamers confess the worst things they've done in The Sims
Jackie Chan in second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
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Dutch King Willem-Alexander declares the end of the welfare state
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Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
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