Gavekal Capital: Could European Earnings Estimates Fall Further?

Tuesday, August 19, 2014

Could European Earnings Estimates Fall Further?

While declines in earnings estimates have moderated somewhat, a longer-term view highlights the possibility for further downgrades-- especially in the cyclical Consumer Discretionary, Financials, Industrials, and Materials sectors-- in the coming months.

All in all, it does not appear likely that European cyclicals' performance will perk up as a result of more constructive earnings estimates:

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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