The market can move higher in Q2 2011

ON UK GROWTH

AEGON's Stephen Adams explains why he does not anticipate any material re-rating in equities, despite low valuations.

2011 aggregate earnings forecasts have been remarkably stable. At a sector level, notable cuts to banks’ and retailers’ profits have been offset by positive revisions to resources and industrials. Of late, there has been a little slippage with consensus 2011 net income growth now forecast at 22% and downgrades to banks have once again been the main feature as Greek woes have pressured funding costs. That said, we have seen an increase over the past month in corporate earnings disappointments in a variety of sectors globally, which it is important to note. This has included many cyclic...