Global stocks have "catching up" to do

CI's Stephen Jenkins finds modest valuations relative to growth prospects

Sonita Horvitch 22 February, 2012 | 7:00PM

Stephen Jenkins, senior vice-president, investments, and global equity specialist at Harbour Advisors, says that there are select opportunities to buy world-class companies with above-average growth prospects at reasonable valuations. "2011 was a difficult year for global equities," he says.

There was greater focus last year on high-profile macroeconomic concerns, rather than on the fundamentals of the companies and the stock market. The market did not, therefore, move in tandem with the "surprisingly robust" corporate earnings growth. "It has a lot of catching up to do this year," says Jenkins.

While corporate earnings growth might not be as powerful in 2012 as in 2011, the growth is expected to remain strong this year, he says. Also, importantly, "interest rates are likely to remain at historic low levels for some time." There is thus "reason to be optimistic about the global equity market for 2012."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Sonita Horvitch

Sonita Horvitch  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies