204846, JPM: Eurozone to be bottoming out vs the US|
Eingetragen von Warren Buffett, 10.4.18 16:09
• Our Global Equity Strategists believe that the risk-reward for stocks has not turned medium term negative, and would be adding at these levels. Equities have again entered oversold territory at the end of March. In contrast, bonds are close to being overbought. Positioning is less stretched – HF beta is down and the AAII Bull Bear indicator is outright negative, suggesting there is less complacency, which is a healthy development. Earnings are likely to be a tailwind: even post some stalling, global Q1 activity levels are still stronger than they were in Q4, while in contrast Q1 consensus EPS expectations (ex tax) are much more muted than they were in Q4. Finally, with Eurozone CESI not far from early 2016 lows, our strategists believe economic momentum is likely to stabilise from here. They advise adding to Equities, and look for Eurozone to be bottoming out vs the US.