Highlights from our latest issue:
S&P 500 EPS rose 27.6% YoY in Q2 but this appears to have been flattered by temporary factors.
The S&P 500 forward implied equity risk premium has fallen to 2.15%, raising our estimate of modified duration to about 45
years, making index valuation highly sensitive to long-term bond yields.
FTSE 100 companies have announced significant buybacks. Incorporating these into a Total Shareholder Yield model, we estimate the FTSE 100 index is modestly under-valued.
ZEW Survey confidence lifted in August. But rising Bund yields, solid EPS growth expectations, and a solid forward P/E suggest significant headwinds.
This report has been prepared by Redward Associates Ltd and is for general information purposes only. This report was not prepared in accordance with any jurisdictional disclosure requirements relating to research reports. Please see the full disclaimer in the index monthly report.