Europe Equities Attractive vs Bonds, Sees PE Expansion: Goldman
2014-06-26 07:49:58.564 GMT
By Morwenna Coniam
June 26 (Bloomberg) -- Equities still attractive vs
government bonds, credit due to low yields, Goldman says in
report; valuation based on normalized earnings below historical
averages.
* Expects valuations to be a positive contributor to equity
returns, though sees most of returns coming from earnings
recovery
* Sees P/E expanding to 15.4x by end 2016 as real cost of
equity continues to come down
* Says decline in cost of equity could be even larger if bond
yields rise less than forecast
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To contact the reporter on this story:
Morwenna Coniam in Hong Kong at +852-2977-6612 or
mconiam@bloomberg.net
To contact the editor responsible for this story:
Roger Neill at +44-20-7673-2867 or
rneill3@bloomberg.net
2014-06-26 07:49:58.564 GMT
By Morwenna Coniam
June 26 (Bloomberg) -- Equities still attractive vs
government bonds, credit due to low yields, Goldman says in
report; valuation based on normalized earnings below historical
averages.
* Expects valuations to be a positive contributor to equity
returns, though sees most of returns coming from earnings
recovery
* Sees P/E expanding to 15.4x by end 2016 as real cost of
equity continues to come down
* Says decline in cost of equity could be even larger if bond
yields rise less than forecast
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Morwenna Coniam in Hong Kong at +852-2977-6612 or
mconiam@bloomberg.net
To contact the editor responsible for this story:
Roger Neill at +44-20-7673-2867 or
rneill3@bloomberg.net