US earnings growth in 2013 – BCA Research

High single-digit earnings growth is possible for the S&P 500 in 2013, according to BCA Research.

Our US Equity Strategy team has been gradually shifting its sector exposure from domestic to more globally-oriented firms, and recently upgraded the S&P Materials sector to overweight. Several bullish signals underpin the upgrade, including BCA’s leading economic indicator for Asia, EM currency strength, and the fact that EM policy rates are now in a clear downtrend. Europe represents another important reason why investors should expect globally-sourced earnings to recover this year. European-sourced revenue will continue to be a very important component of overseas profits.

True, the underlying structural problems that caused the euro area sovereign debt crisis have not been fully resolved.

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