Executive Summary

  • Notable Developments in Regional Recommendations — The relative ranking of the U.K., still an Underweight, worsened in large part because of deteriorating valuation, while earnings revisions weakened too.  Similarly, the ranking of the CEEMEA region also slipped because of the combination of worsening valuation and poor earnings fundamentals.  In contrast, the relative ranking of the Underweight Latin America region improved modestly, largely because of better valuation, although earnings momentum and earnings revisions remain very weak.
  • Notable Developments in Sector Recommendations — The rankings of the cyclical sectors either remained the same or worsened.  Energy remains the bottom‑ranked sector and has gotten relatively more expensive. The relative rankings of the Industrials and Materials sectors both slipped, with Materials, like Energy, becoming relatively more expensive.  The earnings momentum of the Materials sector also weakened significantly.
  • No Material Changes — There are no material changes to our regional or sector recommendations this month.
Geraghty_Fig. 1 Fig. 2 Monthly Apr. 06 16.33

View or print the full report and important disclosures here.

Michael Geraghty is the Global Markets Strategist at Cornerstone Capital Inc. He has over three decades of experience in the financial services industry including working as an investment strategist at UBS and Citi.