Capital Markets: Winter 2019
Valuation Correction Offsets Earnings Growth Performance
Total Return = Dividend Yield + EPS Growth +/- P/E Change
MSCI All Country World Index ex-USA
S&P 500
Dividend
EPS Growth*
P/E Change
Dividend
EPS Growth*
P/E Change
35%
20%
25%
15%
10%
5%
0%
-5%
Sentiment Collapse
Sentiment Collapse
-10%
-15%
-25%
-20%
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
12- Month Total Return:
12- Month Total Return:
16%
33%
14%
1%
12%
22%
-4%
17%
21%
6%
2%
7%
19%
-10%
Source: FactSet as of 12/31/18. *Based on consensus estimates of next 12-month EPS. Actual earnings per share might be materially different than shown. MSCI ACWI ex-US performance based on local currency.
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