In 2017, emerging markets delivered some of their best returns since 2009. However, a series of headwinds – which include a stronger US dollar, lower liquidity due to rising US rates, China’s attempts at deleveraging, and uncertainty surrounding trade – have now hit. This has meant some of those gains... Show More
During the last quarter US economic strength led market sentiment, resulting in a widening valuation gap between the US market and the rest of the world. This widening gap implies a much more favourable backdrop for long-term returns outside the US. Expectations of non-US countries are not only lower, but... Show More
Despite political tension and underperformance of the European Financials sector in the June quarter, results in 2017 and the first quarter were solid. We saw upgrades for the European banking sector through 2017 on the back of improving loan losses and continued uptick in lending growth. The banks are also... Show More
The Euphoriameter rose again in July, with the combined sentiment reading for the S&P500 lifted by higher forward PE ratios, a falling VIX, and rising levels of bullish sentiment in the surveys. The chart will probably trigger memories or comparisons to the 1990's because aside from the surge coming out... Show More
The US economy is already in its eighth year of expansion, albeit one of sub-par GDP growth until recently. S&P 500 earnings are near all-time highs, as are equity indices and valuations. Goldman Sachs’ global strategy team points out that the US has followed a fairly typical equity cycle post... Show More
