Debt Woes No Drag for Europe Stocks as Strategists See 2011 Gain

Discussion in 'Wall St. News' started by ASusilovic, Dec 10, 2010.

  1. Goldman Sachs Group Inc., the most bullish forecaster, says the Stoxx Europe 600 Index will rally 20 percent because profits may expand twice as fast as the 14 percent average rate in more than 26,000 analyst estimates compiled by Bloomberg. Bayerische Motoren Werke AG and WPP Plc, the world’s biggest advertising company, may boost income by an average 18 percent next year, according to data compiled by Bloomberg.

    “People have issues with continued earnings growth and our view is don’t be surprised if profit margins continue to expand,” said JPMorgan Chase & Co.’s London-based strategist Mislav Matejka, who predicts European stocks will climb 12 percent by the end of 2011. “We think the pace of earnings growth expected by analysts could actually be too low.”

    Usually these sort of articles from Bloomberg appear at tops or bottoms. See you 10 % lower.