In this video update, Alex Crooke, Co-Head of Equities, provides a broad overview of global equity markets and reflects on the chances of markets rebalancing following significant US market outperformance. Alex also examines some of the issues facing Europe, including Brexit, and why equity investors should still consider the region.
Despite global challenges – trade tariffs, inflationary concerns and rising US interest rates – robust economic activity is providing a decent backdrop for corporate earnings
Following recent US market outperformance a rebalancing is more likely to come from a re-rating of European markets on the back of increased confidence in international (ex US) earnings
European equities appear attractive in valuation terms, notably energy, materials and financials, helped by ‘easy’ monetary conditions in the region
Re-rating - Occurs when investors are willing to pay a higher price for shares, usually in anticipation of higher future earnings.
Video recorded on 5th October 2018
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