The macro (rising rates and inflation) and market (rising equity prices) backdrop has people compare the current situation with 1987… right before the equity market plummeted. Are we in the same situation and does it mean the worst has yet to happen. Maybe not.
MSCI Europe has 6% left to rise next year, according to Morgan Stanley’s equity strategists for Europe. That forecast is based on a 9% EPS growth, thanks to better GDP numbers and oil price forecasts, according to a report date Nov 26.