Citi Predicts Equities Gains As Global PE Hits 40 Year Average

The bullish mood continues as Citi predicts that not only will equities gain 15% worldwide, they even think there is room for further growth from re-ratings by year-end 2014. “Despite this ‘Great Rerating’ of 40% over the last two years, global stocks look reasonably priced on 40-50 year average P/Es,” writes Citi analyst Robert Buckland. “We think that 2014 equity gains will be driven partly by a resumption of global EPS growth and partly by a further flow-enhanced re-rating.” EPS has been flat for equities Buckland acknowledges that EPS has been flat, and that it will need to start growing…