Equity markets slow down

The European equity market has surged in market capitalistion since 2009, but not necessarily because company earnings have increased. As Barry Norris, CEO of Argonaut Capital Partners, points out, although European corporate earnings recovered spectacularly in 2010 (rising by over 40% in aggregate), from 2011-15 they have, at best, tracked sideways, meaning that most of the return generated over the bull market (and all of the return since 2011) came from a re-rating – from a price/earnings (P/E) ratio of eight times to a P/E ratio of 15 times. Barry Norris speaks with IPE.