Thursday, February 4, 2010

Global Equity Strategist Global Growers

•A Decade of Value Investing — Global value stocks have outperformed growth by 10% since March 2009 lows. This completes a great decade for value. Value has outperformed growth in every region over the last 10 years and globally by 74%
•Tilting Towards Growth — We are now tilting our global portfolio towards growth. After underperforming over the last decade, growth looks cheap relative to value. Growth underperforms during Twilight Zones, but does better afterwards.

•Structural Growth — The most obvious ‘structural growth’ region is Emerging Markets. Consensus forecasts revenue growth here to be 14% over the next two years versus 6% for developed markets. Amongst major sectors, IT and Health Care share structural growth characteristics.

•Global Growers — Stocks in our global structural growth basket are expected by our analysts to deliver stronger than market revenue growth over the next two years and trade on market multiples. The basket includes Apple, Autonomy, Fortescue Metals, ICBC, Itau Unibanco and Teva.


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