The performance of European equities corresponds closely to the strength of the dollar.
We think the odds are that a recovery is under way but we don't think it will be a terribly strong recovery, and our biggest issue is that valuations are not particularly attractive even now.
Profit forecasts for Europe are still far too high.
As for equities as a whole, we are not expecting a great performance over the next 12 months.
They have been appallingly managed, particularly regarding acquisitions. Shareholders will be asked to dip into their pockets to pay for management mistakes.