China: Economic activity in the region is bottom out; however the growth potential is expected to remain unlocked for quite some time because of lacking structural updates.
Market rotation: It is expected that within the EMA, a cyclical recovery is in the making. This would suggest that higher beta markets such as Russia, Brazil and South Korea would benefit. Under such circumstances, one could expect a market rotation to take place, i.e. assets would shift away from China to Russia and Brazil which have under-performed during the recent years.
USA
As of March 31, 2013, broad based US equity indices are to record high and the market has anticipated a strong economic recovery.
Given the present earnings figures (trailing figures), valuations are not overdone.
Based on improving corporate EPS (about 5.5 % for 2012 and 2014), the market has some room to go further.
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