THE MSCI world equity index developed market is now almost exactly 20% from October 2011 to the lowest, according to some definitions, means that we are now in a bull market.
This also means that the equity developed countries are almost at the level from which they fell in early August 2011 following the decision by S & P lowered their rating on U.S. debt.
Our own view that the bull market is really about valuation and price increases.
Regardless, the important question remains: Where will the market go next?
The MSCI World is currently Trading the ratio price-to-earnings of just over 12x earnings estimates. This compares with a multiple of the average 10-year moving more than 14x. The scope of the MSCI World, the United States and Europe, the former England, which still stands in terms of valuation discount to the historical average.
Equity market skeptics will point out that the estimated revenue figure is not conclusive, suggests analyst actually so far wrong in their estimates as profitability of the company's future market trade is in fact closer to the long-term analysis Trending title suggests. It is clearly hard to resist.
We need not say that analysts' forecasts tend to be at this time.
In fact, we'd tend to agree that the company's revenue growth forecasts for Europe still seem optimistic for 2012, even during the current income seems to help to improve it.
All the same, we still believe that by developing a market valuation of equity trading at between one and 1.5 standard deviations below the 10-year trend, there is room for a bit wrong analyst and equity market increases so much more. This statement is based on several points.
We have repeatedly mentioned, pink-cheeked health of the corporate sector in general. Balance continues to look relatively good for history, and a wide margin and, in our view, sustainable.
Meanwhile, the macro backdrop is now starting to look positive for equities as. This is not to say no threat is still out there, but strong U.S. recovery and evidence of stabilization in the euro zone helped, along with the generosity unprecedented in the world, close to the central bank.
In terms of threats, the ongoing story of Greece, in addition to French election approaching, the two that come to mind. Prospect current poll leader, Francois Hollande, trying to protectionist campaign rhetoric into real policy is unlikely to help investors live, as Greece looked likely to get the next phase of EU support, it seems unlikely that we have heard the last of their problems.
But we still believe that the risks are tilted advantage, although further volatility can not be ruled out.
Despite the spike in chatter agreement with Xstrata and Glencore examples of the most widely publicized, we are near all-time lows in terms of actual transactions in the second half on the back of market volatility over the past year.
We expect this growing confidence and in turn, it should act as a further incentive for the equity market valuations given that M & A is net of pension in exchange for cash.
This also means that the equity developed countries are almost at the level from which they fell in early August 2011 following the decision by S & P lowered their rating on U.S. debt.
Our own view that the bull market is really about valuation and price increases.
Regardless, the important question remains: Where will the market go next?
The MSCI World is currently Trading the ratio price-to-earnings of just over 12x earnings estimates. This compares with a multiple of the average 10-year moving more than 14x. The scope of the MSCI World, the United States and Europe, the former England, which still stands in terms of valuation discount to the historical average.
Equity market skeptics will point out that the estimated revenue figure is not conclusive, suggests analyst actually so far wrong in their estimates as profitability of the company's future market trade is in fact closer to the long-term analysis Trending title suggests. It is clearly hard to resist.
We need not say that analysts' forecasts tend to be at this time.
In fact, we'd tend to agree that the company's revenue growth forecasts for Europe still seem optimistic for 2012, even during the current income seems to help to improve it.
All the same, we still believe that by developing a market valuation of equity trading at between one and 1.5 standard deviations below the 10-year trend, there is room for a bit wrong analyst and equity market increases so much more. This statement is based on several points.
We have repeatedly mentioned, pink-cheeked health of the corporate sector in general. Balance continues to look relatively good for history, and a wide margin and, in our view, sustainable.
Meanwhile, the macro backdrop is now starting to look positive for equities as. This is not to say no threat is still out there, but strong U.S. recovery and evidence of stabilization in the euro zone helped, along with the generosity unprecedented in the world, close to the central bank.
In terms of threats, the ongoing story of Greece, in addition to French election approaching, the two that come to mind. Prospect current poll leader, Francois Hollande, trying to protectionist campaign rhetoric into real policy is unlikely to help investors live, as Greece looked likely to get the next phase of EU support, it seems unlikely that we have heard the last of their problems.
But we still believe that the risks are tilted advantage, although further volatility can not be ruled out.
Despite the spike in chatter agreement with Xstrata and Glencore examples of the most widely publicized, we are near all-time lows in terms of actual transactions in the second half on the back of market volatility over the past year.
We expect this growing confidence and in turn, it should act as a further incentive for the equity market valuations given that M & A is net of pension in exchange for cash.
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