Opportunities in International Markets
Cambiar examines the benefits of international investing.
INTERNATIONAL MARKETS REMAIN ATTRACTIVE DESPITE STRONG YEAR TO DATE PERFORMANCE.
ROOM TO RECOVER
Many Int’l markets have yet to fully rebound from their 2007 highs – as their economies improve we believe there is room for these markets to get back to those levels.
RELATIVE VALUATIONS – U.S. VS INT’L
Int’l Equities appear undervalued to the U.S. on both a P/B and forward P/E basis.
FORWARD EPS – U.S. VS INT’L
Earnings in the U.S. are at peak levels, while int’l markets aren’t as far along in the cycle and may have more room to run.
EPS – EURO STOXX 50
After seven years of declining or flat EPS, consensus estimates point towards a rebound in European earnings growth.
Int’l Room to Recover chart: Source: Bloomberg as of 9.30.17. Region values are represented by their respective MSCI Regional Price Index Levels. Percentages are calculated off each indices 2007 month-end highs: Japan (2.28.07), Pacific ex Japan (10.31.07), United Kingdom (10.31.07), Europe ex UK (10.31.07), USA (10.31.07).
Forward EPS chart: Source: Factset as of 9.30.17 Data rebased to 100.
Relative Valuation & Euro Stoxx charts: Source: Factset as of 9.30.17.
Certain information contained in this communication constitutes “forward-looking statements”. Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. Information highlighted or discussed in this post have been selected to illustrate Cambiar’s investment approach and/or market outlook and are not intended to represent the performance or be an indicator for how Cambiar’s portfolios have performed or may perform in the future. Nothing in this post shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced. Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts may be based upon third-party sources that are deemed to be reliable, however, Cambiar does not guarantee its accuracy or completeness. Past performance is no indication of future results. All material is provided for informational purposes only and there is no guarantee that the opinions expressed herein will be valid beyond the date of this communication.
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