The Q2 issue of Equity Market Pulse features a spotlight on developed Europe, which has the highest estimated growth rates and most attractive valuations among developed markets.
Additional highlights of this issue include:
- A trend toward global earnings per share growth continues to synchronize across regions in 2015, with developed Europe and Japan leading.
- Earnings declines in major energy and materials stocks are masking the overall EPS growth trends in the U.S., the UK, and Canada.
- 2015 EPS revision trends continue to decline in emerging and commodity-related markets.
- Although valuation multiples have continued to expand globally, multiples in the UK and developed Europe appear attractive relative to their growth profiles.
- Growth and momentum factors have outperformed over the past year, while small caps have lagged, signaling that investors are cautiously optimistic, in our view.