Europe is capable of bottoming much earlier in the economic cycle than in previous recessions and the worst of the damage to equity valuations may have already occurred, according to BlackRock's Alister Hibbert.
Hibbert, manager of European Dynamic fund, compared current market conditions to the recessions of the 1980s and 1990s, though comparisons end with the last great downturn between 2001 and 2003. He explained that this bear market lasted so long - 31 months - because it started with an over-valuation problem with equity markets, and this is not the case now. Hibbert pointed out that previous bear markets have lasted an average duration of 13 months - albeit in the US - and we have already surpassed 11 months in the current cycle. "Just because earnings are under pressure, it doesn't ...
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