From near death to near peaks: How far can peripheral Europe go?

Frederique Carrier director, RBC Wealth Management   Hard to find value Following substantial market gains over the past two years, value in peripheral Europe is hard to find. Equity markets seem to have discounted successful economic reforms and a recovery in earnings. While at the beginning of 2013, Spain and Italy’s equity markets were trading on single-digit prospective price/earnings multiples, they both now trade on prospective P/Es in the low teens. This may not be overly expensive, but earnings visibility is poor, and the macroeconomic environment is still challenged. ...