Equity Strategy

• The macro drivers of EZ earnings look very positive, according to our Turning Point indicator 

• The 12m forward EPS forecasts for the EZ are at +30%, outstripping US earnings at +15%

• Long-run (5y) EPS forecasts have also been a good indicator of relative EZ/US equity performance and currently, the divergence is extreme -  recognition that the EZ’s longer-term earnings potential is improving could trigger a sharp rotation from the US to the EZ.

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