European Earnings Continue To Fall As Valuations Rise, But…

While earnings revisions continue to fall in Europe and stock valuations are drifting up, many analysts remain bullish, trusting that lead indicators like PMI will prove accurate and that strong growth is around the corner. “Despite the improvement in the European economy over the last year, earnings revisions continue to be negative (we’re now into our fourth year of continual negative net earnings revisions) and have actually deteriorated further over the last week or so,” write Morgan Stanley analysts Graham Secker and Matthew Garman in an April 28 report. “The traditional lead indicators are telling a more positive story.” PMI…