Equities – living on borrowed time

Global equity markets are generally expensive. That’s because central bank largesse has inflated price (P). Meanwhile corporate profits (E) remain depressed due to a lack of final demand. Soothing sounds from central banks might have helped temper recent tantrums. But this is little more than a stay of execution. The trend for most markets — in terms of fundamental underpinnings and future performance — remains negative. We’re staying short/underweight global equities.

To read the full report - Login or Subscribe