Robeco highlights how corporate earnings have remained the primary anchor for equity markets in 2018, even as investors fixate on trade tensions and political uncertainty. It argues that strong earnings momentum continues to support valuations, though the pace of growth may be peaking, raising questions about how long fundamentals can offset rising macro risks.
Multi-Asset Market Outlook
Robeco
Research
24 Pages
Key Takeaways
Earnings Growth Strength: Global earnings growth reached roughly 20% in 2018, providing the main support for equity markets despite increasing volatility and geopolitical uncertainty.
Positive Revision Trends: Earnings revisions remained positive across major regions, with upward revisions outnumbering downward ones in most sectors through mid-2018.
Valuation Cushion Effect: Strong earnings growth helped offset rising interest rates, keeping forward P/E ratios broadly stable even as bond yields increased during 2018.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
