Key components needed to boost market momentum include a strong economy, low valuations and falling interest rates.
All of those issues present a challenge in the current environment.
The economy shrunk at a 1.5% annualized rate in Q1, stock market valuations have come down significantly but remain just above their 10-year average, and interest rates are on the rise, though bond yields are off their highs.
The firm amplified its “positive outlook on European stocks with strong balance sheets, high and stable profit margins, and companies that benefit from rising capital expenditures and government investment.”
