My recent work on COVID-19 has revealed four main conclusions: The virus attacks those over 54, there are four common COVID-19 related death comorbidities, those who struggle with obesity are highly vulnerable, the response by governments has pushed 150 million people into poverty.Read More
Global Equity FVMR Snapshot: Emerging markets and Developed markets show 2018CE* EPS growth that is more or less in line. Emerging markets trade below Developed markets at a PE of 12.2x and this is still the case if we exclude US that has the highest PE.Read More
Global Equity FVMR Snapshot: Looking at ROE/PB, we can see that Emerging Markets are more attractive at 2017 8.2% ROE/PB than Developed Markets at 5.9%. Emerging Markets trade at a PEG ratio of only 0.8 (a rule of thumb is that below 1.0 is cheap).Read More
Materials look attractive as earnings growth is expected to be solid in both 2016 and 2017. Consensus expectations are EPS growth of 11.5% in 2016 and 16.1% in 2017 for the Materials sector.
Heath Care is the only sector that delivers an ROE of above 20% globally.Read More
Looking at ROE/PB, we then can see that Emerging Markets at 2016 7.4% ROE/PB are more attractive than Developed Markets at 5.7%. Even though Developed Markets have higher ROE, it’s less attractive on ROE/PB. Most ROE for the price-to-book you pay you’ll find in Emerging Europe where you get 13% ROE for every unit of PB.Read More
Developed Markets are only more profitable in terms of ROE than Emerging Markets due to the US. Even though the US has higher ROE, it’s less attractive on ROE/PB relative to both Emerging Markets and Developed non-US.Read More
Health Care delivers the highest ROE among sectors globally—above 20%. Energy is still most expensive on PE due to low earnings. Earnings in the World are expected to see double-digit growth in 2017.Read More