QUOTE(T231H @ Apr 28 2016, 09:00 PM)
We are downgrading three markets on the back of sharply higher prices and stagnant or deteriorating fundamentals.
iFAST Research Team April 28, 2016
•Equity markets have staged a strong rebound since we upgraded the markets on 12 February 2016 ◦Market Performance: US +12.4%, Europe +11.5%, Brazil +36.9% (in local currency terms)
•While equities have moved sharply higher, underlying fundamentals have either remained the same or posted slight deterioration for the three markets
•Higher prices with lower earnings estimates have resulted in higher valuations for all three markets, leading to lower forecasted returns for investors ◦Expected Annualised 2 Year Returns: US -0.6%, Europe +1.2%, Brazil +4.1% (in local currency terms)
•We are downgrading the Star Ratings of the markets as follows:
◦US - From 2.5 "Neutral" to 2.0 "Unattractive"
◦Europe - From 3.0 "Attractive" to 2.5 "Neutral"
◦Brazil - From 4.0 "Very Attractive" to 3.0 "Attractive"
•Investors should not chase prices or performances, consider seeking more defensive strategies for US and Europe, relook their portfolio allocations
https://secure.fundsupermart.com/main/artic...d-Brazil--11467
Apr 28 2016, 09:34 PM

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