Las bolsas aún tienen potencial para seguir avanzando en 2018

In 2018, equities still have room to grow Equity market monthly review  § Global equity markets gained 1.8% over the month with the US (+2.8%) and Japan (+1.4%) leading the pack, while at a sector level consumer stocks outperformed. The legislative progress on the US tax reform was the main driver of US performance, with a notable rotation in sectors and styles.

§  Elevated valuations and a slowdown in earnings momentum should translate into lower equity performance going forward. In the US, consensus earnings growth expectations do not appear to entirely price in the potential boost from the corporate tax reform and we expect corporate share buybacks to remain be the largest source of equity demand.

§  Our central scenario is that price returns will lag earnings growth in 2018, allowing for a soft landing in valuation multiples. We expect global equities to return 5-10%, with a positive bias for emerging markets and the Euro area in our global asset allocation framework.