An unrealistic amount of growth is needed to justify investment in US (versus European) stocks

Most investors are terrible at estimating future growth potential. Unfortunately, being able to estimate a company’s projected growth rate is an essential part of the valuation process and the whole concept of investing, putting money away today to receive more cash at some point in the future, is based on estimating a company or country’s future growth potential. Analysts at Source Research, the multi-asset research platform believe they have come up with a solution to this problem. In a research note published earlier this week, analysts suggest that rather than trying to predict future growth rates, we should reverse the…