As for equities as a whole, we are not expecting a great performance over the next 12 months. |
Profit forecasts for Europe are still far too high. |
The performance of European equities corresponds closely to the strength of the dollar. |
They have been appallingly managed, particularly regarding acquisitions. Shareholders will be asked to dip into their pockets to pay for management mistakes. |
We think the odds are that a recovery is under way but we don't think it will be a terribly strong recovery, and our biggest issue is that valuations are not particularly attractive even now. |