But the ongoing compression in
European banking valuations is puzzling — who the hell wants to bet & sweat over sub - 0.5 P / B banks, when the cream of the crop remains on sale at 1.0 times book (or less)?!
Not exact matches
We expect that
European and Japanese stocks will continue to outperform U.S. ones in 2015, given their more attractive
valuations and Europe and Japan's more market - friendly central
bank policies.
The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused
European assets like U.K. real estate and
European banks), and instead focus on assets with relatively attractive
valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.
The hard truth is that although rising
valuations can continue a while longer, particularly if the
European Central
Bank or
Bank of Japan add to their own quantitative easing programs,
valuations, especially those for U.S. equities, are already high.
Finally, looking at
valuation,
European banks traded at a material discount to tangible book value, one standard deviation3 below their historic forward price - earnings multiple, and near a 20 - year low relative to global
banking peers as the year came to a close.4 We are also finding select financial sector values in Asia, in both mature, under - earning
banking markets like South Korea and Singapore, as well as underpenetrated, growth - oriented markets like China (particularly in insurance) and India (particularly in
banking).
We expect that
European and Japanese stocks will continue to outperform U.S. ones in 2015, given their more attractive
valuations and Europe and Japan's more market - friendly central
bank policies.
The big takeaway for those seeking to buy into market weakness: Be wary of buying notionally cheap assets that face challenges (e.g. domestically - focused
European assets like U.K. real estate and
European banks), and instead focus on assets with relatively attractive
valuations and positive fundamental drivers, such as quality stocks, dividend - growth stocks and investment - grade bonds.
First, extreme stock
valuations challenge the notion that you should always follow the central
banks (e.g., Federal Reserve,
European Central
Bank,
Bank of Japan,
Bank of England, etc.).
Any discussion of the
valuation - and return prospects - of
European markets needs to include consideration of how
banks may perform.
LCIA Arbitration 2006 Negligent
valuation claim against international investment
bank following sale of Eastern
European bank in administration.
The vice president of the
European Central
Bank (ECB) warned about the risks of investing in Bitcoin at current
valuations.
Also it was reported that the
European Central
Bank (ECB) want to impose tighter controls on the exchange of virtual currencies; A group of
banks in Hong Kong are developing a system that uses blockchain tech to share information about mortgage
valuations;...
Also it was reported that the
European Central
Bank (ECB) want to impose tighter controls on the exchange of virtual currencies; A group of
banks in Hong Kong are developing a system that uses blockchain tech to share information about mortgage
valuations; In a new SEC filing, State Street is now listed as the administrator and transfer agent for the Winklevoss Bitcoin Trust, a proposed bitcoin ETF; India's biggest IT services firm Tata IT is working on over 100 blockchain projects — these articles and many more on our Facebook page.