SocGen: “Global Stocks Are Trading At 21.5x P/E: What Equities Need Now Is Higher Revenue Growth”

As we begin the second half of the year, which follows one of the best 6-month periods for global stocks in history, largely courtesy of a record ongoing liquidity injection by central banks (which however, is rapidly slowing down), here is SocGen’s x-asset strateigst, Andrew Lapthorne, laying out where we stand, noting that the MSCI World positive run continues – at 21.5x P/E, the same level where it was in 2004 from where it continued on a 70% run -even as Europe has its worst month since Brexit, and summarizes that what global stocks need to continue their rally is not high bond yields, but higher revenue growth.

This post was published at Zero Hedge on Jul 3, 2017.