Asset Allocation Watch: Are equities cheap or expensive ahead of the reporting season?
We have updated our Equity Chart Book to provide you with an overview of expectations- and valuations entering the reporting season. Where do you find pockets of value in the current environment?

Welcome to an update of our equity valuation chart book. The reporting season kicked off with a couple of the big banks on Friday and in this piece, we put the expectations into a regional and geographical context.
As per usual, loads of charts and a few words as we like it!
Conclusions upfront:
1) Equities are NOT…
Are equities expensive in a historical context?
Only South American and Pacific stocks look outright cheap relative to historical Fwd P/E levels entering this reporting season. Across the US, Asia and Europe stocks trade more in line with 5-10 year mean values of P/E multiples. It would be wrong to say that equities look outright expensive based on a historical P/E analysis.
Chart 1: 12m fwd P/E across geographies
We have updated our Equity Chart Book to provide you with an overview of expectations- and valuations entering the reporting season. Where do you find pockets of value in the current environment?
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