earnings

Europe appears to be in the twilight of the mid-cycle, with economic growth setting at a solid, sustainable pace.

Overseas investors returning

Selling stocks with good earnings upgrades

Support and attractive valuations could release the potential of commodity stocks

For some time, the equity market has benefitted from what has been termed a 'Goldilocks' environment.

Political issues remain

Over the past two years, emerging markets (EMs) have enjoyed a strong return to outperformance, driven by the first synchronised global growth episode since before the global financial crisis.

Stretched valuations

Value should emerge quickly

Since the end of 2007, European equities have underperformed US equities by 63% on a real total return basis (in local currency terms).