The consumer sectors are facing a perfect storm of declining demand (lower real incomes and consumer confidence) and widespread inflationary pressures, which Edison Group believes are unlikely to abate quickly. Although downgrades to profit estimates have begun, Edison believes the full impact of the economic downturn is yet to be reflected in what appear to be optimistic growth expectations for the majority of companies. Edison highlights a number of companies already sufficiently discounting a reduction in revenue, many of which have a net cash position.
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