Barclays expects global equities to yield 9% total return in 2015
Barclays stated that the global equities is expected to generate a return of 9% next year. It is predicted that the earnings growth of corporate will be 12%. Valuations are in concordance with historical level and the bond yields will be increased. The long-term growth rate for earnings amounted to 1.5%, lower than historical standards.
The broker suggested to increase the weighting on Japanese equities and Continental European equities but underweight US equities and Asian equities (except for Japanese equities). This is because the US equities are more expensive compared with non-US stocks, while the Asian equities are relatively expensive compared with emerging Asian markets.
Barclays stated that the global equities is expected to generate a return of 9% next year. It is predicted that the earnings growth of corporate will be 12%. Valuations are in concordance with historical level and the bond yields will be increased. The long-term growth rate for earnings amounted to 1.5%, lower than historical standards.
The broker suggested to increase the weighting on Japanese equities and Continental European equities but underweight US equities and Asian equities (except for Japanese equities). This is because the US equities are more expensive compared with non-US stocks, while the Asian equities are relatively expensive compared with emerging Asian markets.
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