South Korea’s Exports Are Flashing A Warning Sign For Stocks

Luke Suddards

6 days ago1:43 min

South Korea’s Exports Are Flashing A Warning Sign For Stocks

If you want to get a sense of where corporate earnings around the world are headed, South Korea’s exports might give you an idea. The country’s companies are deeply embedded in the global supply chain, and their collective exports can serve as a leading indicator for international economic activity and global stock earnings per share (EPS). This chart shows us the long-standing relationship between South Korea’s export growth and the earnings per share (EPS) growth for the MSCI World Index.

The current consensus for 2023 MSCI World EPS is at 3.6%, which seems a tad bit too optimistic based on this chart. With South Korea’s exports dipping into negative territory, it’s likely that EPS growth with follow – and potentially overshoot this, as it’s often done in the past. What’s more, Citi ana

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