• Wed
  • Oct 1, 2014
  • Updated: 7:31am
Chart Book
PUBLISHED : Monday, 21 July, 2014, 11:50pm
UPDATED : Tuesday, 22 July, 2014, 4:50am

Chart of the day: Equity sentiment gap narrows

BIO

David is a technical strategist with a focus on sentiment, positioning and momentum analysis across global asset classes. He worked for 18 years at NatWest Markets / Deutsche Bank as a market strategist followed by a spell working for one of Europe’s largest hedge funds. David was ranked among the Top 10 for Technical Analysis in the 2011 and 2013 Reuters Extel surveys.
 

Sentiment towards Asia ex-Japan equity markets has whipsawed from extreme pessimism to extreme optimism this year, but is now looking more balanced. The region is certainly less stretched relative to US equities. Emerging markets as a whole trade at a 25 per cent discount to developed markets in terms of their respective trailing price-earnings ratio. Meanwhile, Asian growth remains the strongest of any region. Expect the sentiment gap between Asia ex-Japan and the US to start to close.

David McBain is a strategist with Absolute Strategy Research

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