Global Equity Views: Themes & Implications

By Paul Quinsee via

Themes and implications from the Global Equities Investors Quarterly.

  • A raft of strong first quarter earnings results affirms our view of a synchronized global recovery in profitability after several years of stagnation in reported earnings. Our analyst forecasts of double-digit earnings growth globally in 2017 and 2018 seem very much on track.
  • Although the U.S. economy is entering the later stages of an economic cycle, we believe the risk of a recession remains low for now, and therefore we expect another couple of years of solid earnings growth from U.S. corporations.
  • With profits improving worldwide, we see a supportive environment for equity investing, particularly for emerging market (EM) and European equities, where valuations are more reasonable than they are in U.S. markets. Opportunities can be found across countries (e.g., Brazil), sectors (e.g., financials) and investing styles (e.g., value).

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