The Q3 issue of Equity Market Pulse spotlights potential opportunities in Asia, attractive growth and valuations in developed Europe and Japan, and risks associated with rising volatility and elevated 2016 global EPS estimate levels.
Additional highlights of this issue include:
- A spotlight on growth and valuations in Asia, with particular focus on Korea.
- A focus on strong 2016 earnings estimates, which appear predicated on a significant global economic recovery that may not materialize.
- A look at a widening divergence in growth and revision trends in developed versus emerging and commodity-driven markets.
- An examination of valuations in emerging and commodity-related markets, where cash flow-based valuations have become less attractive, even as prices have fallen.
- A comparison of recent alpha factor performance, where "risk off" strategies have been outperforming "risk on" strategies.