Update on quant signals for EU equity sectors and styles

We present an update of our proprietary equity valuation tool, based on quant models, which provides indications of over- or undervaluation for different sectors and styles of European equities. We add tables showing the past recovery after the huge drawdown caused by the Lehman crisis, for sectors and styles.

Highlights:

  • We present an update of our proprietary equity valuation tool, based on quant models, which provides indications of over- or undervaluation for different sectors and styles of European equities. We add tables showing the past recovery after the huge drawdown caused by the Lehman crisis, for sectors and styles.
  • Currently, among the European equity sectors, financials, telecommunications, energy, staples and automotive look undervalued while materials and IT appear overvalued.
  • Healthcare and utilities (a “buy” in our late October release) outperformed and are currently fairly valued (not expensive yet).
  • Among the European equity styles, undervaluation is indicated for value, small cap, large cap value and minimum volatility while cyclical, growth and large cap look expensive.

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UPDATE ON QUANT SIGNALS FOR EU EQUITY SECTORS AND STYLES

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