Since the beginning of the year, soft data have been particularly strong, with PMIs and confidence surveys hittin a 6-year high.
Over the last 18 months we’ve seen the beginning of a rally in value stocks, which have rebounded from 2015’s 20-year lows. In 2016, value stocks outperformed growth stocks by the widest margin in well over a decade.
Despite great expectations of economic recovery over the past few years, corporate earnings growth has been in relatively short supply. Having rebounded strongly after the financial crisis, global earnings per share (EPS) improvement trends have been muted or poor since 2011.