CHART OF THE DAY: Why Global Investors Love The US Stock Market

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Gerard Minack, Morgan Stanley’s head of developed market strategy, created this chart to show how 2013 earnings expectations for Australia’s stock market — the S&P/ASX 200 — have deteriorated through out the year.  Australia’s economy is largely driven by a mining industry, which has been supplying the emerging markets.  Those emerging markets have slowed significantly.

It’s worth noting, however, that the Nasdaq has had net upward EPS revisions.  And S&P 500 EPS revisions have been revised down only modestly.

The lack of earnings expectations volatility is certainly welcome by investors.

Below is the chart from Minack.

  • DM EX-US: Developed Markets excluding the US
  • MSCI EM: Emerging Markets
  • EURO STOXX: Europe
chart of the day, Forecast 2013 EPS, nov 2012

Photo: Morgan Stanley

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