As I pointed before, equities have outperformed many other assets the last months and this can also be seen on Chart 1. There is a correlation between equity prices and the earnings per share revisions. The last couple of months we saw a decoupling between the two.
It is my prediction that global equities will therefore continue to underperform other assets in the coming months.
|Chart 1: Equities Vs. EPS (Kohler's Graphs)|