Europe Still Offers Cyclicality at a Discount: JPM’s Peters

The video discusses the high earnings forecasts amid uncertainties, focusing on the cyclicality in portfolios and the reopening trade in Europe. It evaluates the valuation of European equities, their correlation with U.S. Treasury yields, and their market position. The discussion includes predictions on European market trends, the potential for a strong rebound, and a comparison of growth prospects between Europe, the U.S., and Asia.

What is the main concern of those who believe earnings forecasts are too optimistic?

• The growth of Asian markets

• The strength of the U.S. dollar

• The uncertainties ahead

• The impact of rising U.S. Treasury yields

What is expected to drive Europe's reopening trade?

• Government policies

• Increased exports

• Consumer health and pent-up demand

• Technological advancements

How are European equities typically correlated?

• With rising U.S. Treasury yields

• With falling oil prices

• With the strength of the euro

• With Asian market trends

What is the expected change in Europe's portfolio rating in the near term?

• From overweight to underweight

• From neutral to underweight

• From underweight to neutral

• From neutral to overweight

In the long term, which regions are considered more attractive for secular growth?

• Middle East and Asia

• Europe and Africa

• U.S. and Asia

• South America and Europe