Is the party finally over in Australia? It’s hard to find any reasons for optimism in recent research notes, and we highlight those analysts that have been early to call out the Reserve Bank of Australia to cut rates and flag the growing the risks of recession. It would represent the end of an era for the lucky economy and the first recession since 1991. Longview Economics draws a straight line from higher bank funding costs to lower household spending and a recession late this year or early next. Capital Economics reckons the housing bust will be the biggest on record, while Redward Associates sees the gloomy picture compounded by lack of understanding among policymakers and urges the central bank to get cracking with rate cuts. Minack Advisors also has a recession as their base case, and they emphasise the wealth effect as a major catalyst to a significant downturn. Using previous global housing busts, and their impact on savings rates as a point of comparison, Minack says that if a similar experience plays out in Australia, then the economy is toast. Yet amid all this, Australian equities remain quite resilient, and Macro Strategy Advisors has done a full review of the latest earnings season, assessing those stocks in the firing line, pointing out how some of these exposed stocks are weathering the storm. They also point to other opportunities in Australia for equity investors who have traditionally perceived this market as a mining and banking play, pointing to value in other sectors beyond.