Part I: Is peripheral Europe overvalued?

Andrew Parry CEO, Hermes Sourcecap     Need to see profits Anyone dwelling under the delusion this is a normal economic cycle in Europe should look at plunging Spanish five-year bond yields, now trading below the equivalent US treasury yield. Peripheral equities have gone from pariahs to saints, driven higher by a collapse in the risk premium and nascent signs of an economic recovery. No longer is fear stalking the eurozone, and valuations have expanded dramatically in relief. But are stocks expensive? During recent meetings with Spanish companies, management was optimistic...