Bernstein global quantitative strategists including Alla Harmsworth downgrade U.S. growth stocks to neutral and switch into European growth shares, according to note.
European growth stocks have lagged their U.S. counterparts and are looking “very cheap”; also supported by benign sentiment and should benefit from global cyclical expansion.Buying growth in Europe means buying range of cyclicals: consumer discretionary, materials, tech, energy.
Bernstein remains constructive on equity market overall: valuation upside looks modest at the index level, and greater for Europe than for U.S., but cyclical strength and growing earnings a key source of tactical support in coming months.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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