18 January 2018 at 11:25 GMT
• S&P 500 EBITDA estimates at 27-year high
• MSCI World Index posts 15 months of gains
• 'In absolute terms, things look choppy'
By Peter Garnry
This year began with the most buoyant environment since 2006 before the first signs of US housing weakness materialised. Economic surprise indices across many major economies are at their highest levels since their inception in 2000. Estimates for EBITDA growth among S&P 500 companies, meanwhile, are higher than any realised annual EBITDA growth rate in this index since 1991.
There are some indications of a price bubble in equities, but nothing like the periods leading up to the 1987 and dot-com crashes. Equities are not expensive relative to everything else, but in absolute terms, things look choppy.
Saxo Bank's strategy team is out with their take on world markets for the first quarter of 2018. Download your copy now.